VSTEP B1, B2, C1 Speaking Part 2: Solution Discussion

- Question:

Your school wants to teach financial literacy. Should they focus on budgeting, investing, or understanding taxes?

- Answer:

I would recommend focusing on budgeting as a primary aspect of financial literacy in schools. Although investing and understanding taxes are important, budgeting is a fundamental skill that can be applied immediately by students.

Budgeting teaches students how to plan and manage their income and expenses, an essential skill not only in their student lives but also when they enter the workforce. It enables them to understand the importance of saving and controlling their spending, which is the foundation for effective financial management.

Comparatively, investing requires some level of financial stability and spare income, which most students might not have. Moreover, it's a more complex area, best approached with a solid understanding of basic financial principles. Similarly, understanding taxes, while critical, is more relevant once a person starts earning income.

Therefore, I believe starting with budgeting provides a practical and essential base, and once students have mastered it, they could move on to advanced topics like investing and understanding taxes.