It is wise to make financial literacy compulsory in SPM?

Sijil Pelajaran Malaysia (SPM) is the equivalent to the O-levels of the Malaysian education system. It is the final stage after which the students have to decide the kind of career they want to opt as they begin to be financially independent. The exam comprises five compulsory subjects- math, science, languages, morals and religion. These subjects are considered to be the basis of a student’s all-round development and the fundamentals of a productive citizen. But what exactly is the definition of a productive citizen? How would a student learn how to manage his finances so that he can contribute to the society as well as take care of himself?

With so many risks in the world of debts and loans, it is important to teach the young adults the basics of money management. So should financial literacy be a part of SPM? Let's see...

What is financial literacy?
No, it is not the ability to read the serial number of bank notes to determine the amount of wealth a person has. Financial literacy is the ability to realize and understand the role of money in this world. To be more precise, it indicates the knowledge and skill set that helps a person in making any finance-related decisions.

The need and influence of money is omnipresent
You affects everybody in different ways. Donating, saving, investing, and spending money are some of the most important activities that we do in a regular basis even if we aren't aware of the nitty-gritties involved in it.
It is common for you to suddenly get bombarded with tons of credit card and insurance options once we start earning. It would be in your best interest to slowly get introduced to all these concepts early in your life. It will not only help you in managing your funds in a better manner but it will also help you in falling prey to frauds and scams.
It is also important to understand the financial mechanism of the world, particularly the country you belong to. To know why economies fall or rise is a wise thing. It helps one in understanding the new better.
If they introduce financial literacy as one of the core subjects, the students will be ready to handle their finances better. It will also help them to determine the kind of job they want as they will be aware about which industry contributes how much to the economy. This will direct their interest and skills towards the best paying career for them.

Financial illiteracy is a menace
A study released by the Asian Institute of Finance states that youth in Malaysia is not equipped enough to deal with varied financial services and, products and the increasing complex. One can predict a monetary disaster when you relate this study with the future of the local economy. Early education in financial literacy will help in eliminating this problem and will make sure that the Malaysians are equipped with the knowledge about how to handle their money.
Countries like Singapore, the United Kingdom, Canada, Japan, and Australia are aware that their populace lack financial literacy. So, this problem is not restricted to Malaysia alone.