Personal finance is the way people manage their money. It includes budgeting, banking, insurance, mortgages, investments, and retirement, tax, and estate planning. Having the right knowledge can help you make intelligent decisions about your money and meet your goals, like saving for college or living comfortably when you can no longer work. Financial knowledge can also help you distinguish between good and bad advice.

Whether you follow Dave Ramsey’s Five Foundations of Personal Finance or his 7 Baby Steps, having the skills to save, spend, invest, and protect your money is the key to financial success. To help your students learn these skills, use this article as a starting point to teach them about three foundational concepts: finance prioritization, assessing costs and benefits, and restraining spending.

What Is the Fourth Foundation in Personal Finance?

The fourth foundation in personal finance is to pay off debts. The cost of college continues to increase, and it’s important for students to understand that going into debt to attend school will likely have a significant impact on their future. Instead, if they can save and pay for college with cash, then it’s better to do so.

The final foundation is to build wealth and give back. This focuses on teaching your students to invest wisely, so that they can grow their money and leave a legacy for future generations. It’s also about encouraging them to be generous, so they can share their wealth with others and enrich their own lives at the same time.