Do personal finance classes work?

Personal finance classes can work if they address learners' unique needs and situations. Basic overview classes may overwhelm you if you start one while experiencing financial distress. Research and compare different classes to find the one that meets you at your current skill level and emphasizes the knowledge and skills you need for financial well-being.

Why do people struggle with personal finance?

People struggle with personal finance because they know so little about it. Most adults lack basic knowledge about budgeting, savings, and the stock market. These and other factors increase their chances of making poor financial decisions.

Is finance hard if you're bad at math?

No, as the basics of personal finance require only addition and subtraction. While there is some more complex math involved the more you learn, you don't need to do it all by hand. It is more important to understand how it works than to perform detailed calculations. You can then use these skills to create a simple budget, an essential tool for saving money and paying down debt. Personal finance classes can also help you understand how compound interest and other more complex math topics impact your financial health.

How important is personal finance?

The benefits of learning personal finance go far beyond increasing the money in your bank account. You can pass on these skills to children or other family members, setting them up for long-term success. You may also feel a sense of accomplishment and security by meeting your financial goals.

What are the benefits of learning personal finance

Table of Contents

Personal finance course topics
Benefits
Frequently asked questions

By: Thomas Broderick, Edited by: Rebecca Munday, Reviewer: R.J. Weiss

Published: May 8, 2025

Do you struggle with saving money or paying down debt? If so, you may benefit from learning personal finance fundamentals. Classes can help you develop money management skills, avoid scams, prepare an emergency fund, and promote peace of mind.

Learn more about personal finance classes and how they can help people of all ages and backgrounds.

What personal finance courses cover

The best personal finance classes and programs emphasize financial literacy skills. Introductory classes cover topics everyone should know, such as budgeting, saving, and investing.

Learning the basics can prepare you to explore intermediate and advanced topics. These topics may include planning for retirement, improving your credit score, and understanding how global markets impact your finances.

Family members and peers can help you choose the personal finance classes that best meet your unique needs.

Benefits of learning personal finance

Build good money management habits

Your financial health rests on a foundation of good money management habits. They include:

Defining your financial goals
Organizing your financial documents
Finding the best bank for your money
Paying down credit card and student loan debt every month
Staying on top of monthly bills, like rent, car payments, electricity, internet, phone, and other financial obligations
Putting money into a retirement account, such as a Roth IRA or 401(k)

Applying these habits in your daily life can result in a better short- and long-term financial outlook, making learning personal finance worth it.

Learn how to spot predatory scams and practices

Personal finance classes can also teach you how to avoid becoming the victim of scammers.

Scammers may use phone calls, letters, or emails to get your private financial information, such as bank routing and account numbers. They may pose as your employer, an IRS agent, or other official. Strong personal finance skills let you identify these individuals and report them to the authorities.

Avoid expensive financial mistakes

Personal finance classes can teach you to avoid common mistakes people make with their money. Even fundamental knowledge can help you steer clear of pitfalls that include:

Not understanding that loans have to be repaid
Cosigning a loan for someone with bad credit
Putting your money in a low-interest savings account
Increasing your expenses after receiving a raise at work
Investing based on emotion rather than reason

Avoiding these and other traps can help you save money, preserve your credit score, and establish a firm financial future.

Reduce financial anxiety

Financial anxiety affects 80% of Americans, according to a 2024 Discover survey. Most respondents pointed to credit card, home, or medical debt as their biggest stressor. Prolonged heightened anxiety can lead to physical symptoms, such as upset stomach and sleep problems.

Financial literacy addresses debt anxiety by teaching you how to pay it off step by step. Lower debt can also improve your credit score. A better credit score may qualify you for lower car insurance premiums, better housing, or new employment opportunities.

Prepare for financial emergencies

A 2025 CBS News report reveals that nearly 60% of Americans cannot afford a $1,000 emergency expense. Typical financial emergencies that people may not expect include:

Medical bills
Car maintenance
Bank overdraft fees
Home repairs
Death of a loved one
Legal bills
Divorce

An emergency fund can insulate you from these and other financial emergencies. Consider starting an emergency fund in a high-yield savings account (HYSA). Earned interest can help your emergency fund keep up with inflation.

Achieve your financial goals

Financial literacy can help you achieve your financial goals, such as saving for a car or vacation. You can achieve these and other short-term goals by sticking to a budget and investing your savings into a HYSA. Just make sure these funds are kept in a separate savings account from your emergency fund. This keeps your emergency savings distinct from the money you spend or allocate for other goals.

Personal finance classes can also help you plan for the distant future, such as retirement. Coursework may cover IRAs, 401(k)s, and other investment vehicles. Classes can help you explore these options and give you the tools to perform further research.

Frequently asked questions about the benefits of learning personal finance

Skill Development

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