Why is it important for students to study Financial Mathematics?
Money is a currency for life. Its management influences our standard of living, our health and well-being, and freedom to make choices about our futures. Hence, students should be introduced to ways of optimising their monetary resources, comparing and evaluating their options, planning and strategising.
In stage 5.1, students are generally aged between 14-16. This is a common period where young people begin their journey towards financial independence and accountability, by seeking paid work. It is imperative that students become financially literate, which involves making informed and effective personal decisions by understanding the basics of the following areas:
Hence, the rationale and aim for this unit of work is to teach students the fundamentals of achieving financial security by understanding their financial options and implications. For example, in understanding simple and compound interest, students will be made aware of the serious risks and repercussions of accumulating credit card debt.