While I’m not a big fan of taking days, weeks, or months, and making them “So and So *insert period of time*,” this month is financial literacy month. Even though that means absolutely nothing, the topic of financial literacy is highly important; finances are more complex than ever, and properly managing them is crucial to a thriving economy now, and in the future.

And I know that the overarching theme of this semester-long discussion on the civic issue of education does not seem to tie into this, however, there is quite an important connection.

There’s a really big issue with today. See, managing your own finances isn’t as simple as, “dollars in, dollars out,” meaning there is much more than working and making money, then using it to buy things.

There are so many other factors necessary for financial health.

Do you know what your FICO Credit Score is, and how it is important to you? Do you know how much money you need to save for retirement, and where the money is coming from? Do you know how you will pay off your student loans, while simultaneously saving for your own child’s college fund?

Do you know the money you lose by entering into credit card debt? What about the impact of “bouncing a check?” What about the difference between a debit and credit card?

Those who are financially literate, regardless of their income, should have no problem answering these questions, which can generally lead to financial health. However, there are a large amount of people in America who couldn’t answer all, let alone some of these questions.

In the public learning environment (with high school being the biggest target), one of the biggest criticisms is the lack of applied learning. I believe this criticism is most definitely justified.

I’ve seen an Internet meme circulating that goes a little like this.

Me: I don’t even know what taxes are, or how I even pay them?

School: Don’t worry. The mitochondria is the powerhouse of the cell.

While I do see value in learning introductory science throughout high school, this meme illustrates the fact that many people, especially of our age, do not understand how the world—where cash is king—operates.

In more recent news, the Consumer Financial Protection Bureau is launching an effort to insert more of financial education in the K-12 setting. Their research has shown that those who receive financial education in their years of public schooling achieve significantly higher savings, net worth, and credit scores for the rest of their lives.

If the CFPB can push their agenda into the limelight, the effects could be crucial, considering many Americans are currently making avoidable mistakes in regards to their financial decision-making.

One poor decision that many people are making is saving for retirement. It is estimated that 60% of workers have less than $25,000 saved for retirement.

Regardless of your income, it is necessary to have much more than $25,000 for retirement, considering the crucial fact that retirees no longer have an income from working. Now, retirees can receive Social Security benefits, but those benefits are not often enough to live off of solely. Plus, the United States’ Social Security system is incredibly broken and running out of funds (but that’s another story).

Those with financial knowledge also realize that saving money for retirement from the ages of 21-30 are incredibly crucial, with these 10 years of investing leading to around $300,000 extra dollars in retirement in comparison to someone who began their retirement plan at the age of 31.

The average US household that owns at least one credit card has $15,611 in credit card debt. That TV, couch, and video game system that you bought (and don’t need) for $4,000 total is now costing you $15,000, because of the wonderful interest rates that credit card companies charge.

These are two of the largest mistakes that Americans are making, among many other things.

This is why we need to teach our citizens young how to be financially independent and intelligent.

These classes would need to go more in-depth than my Family Consumer Science high school class, where we learned how to balance a checkbook (along with many other watered down activities).

With qualified teachers, and the replacement of some elective space with required financial literacy space, Americans could have more financial health, which leads to much less stress in the long run.