Why Financial Literacy Should Be a Priority for Every Law Student

Everyone needs to sharpen their financial literacy skills, no matter what their goals in life may be. For law students, it’s not just a prerequisite for learning about finance law or corporate law; it’s a valuable life skill that can help them overcome any financial hurdles and achieve their long-term goals with regard to both their legal practice and their life outside of it. 

Understanding debt, saving funds, investing, and learning how to use credit properly—these are all important skills that law students need to practice early on so that they can build a stable financial foundation for their futures. Here are a few reasons every law student needs to start developing their financial literacy as early as their first year in law school: 

1) They’ll Be Able to Handle Law School Expenses with Ease

The path towards becoming a lawyer is an expensive one. The top law schools in the Philippines have steep tuition fees, and while public law schools are much more affordable, students still have other costs that they’ll need to cover. They may need to pay for books, transportation, necessary gadgets and technology, dorm or boarding expenses, and food. Then, once they’ve graduated, money will go towards bar review centers, study materials, and bar examination fees.

Financial literacy can help law students manage their finances better so that they can easily support themselves as they get their education. Basic financial literacy skills such as budgeting, expense tracking, and paying credit card bills on time can all make the journey towards becoming a lawyer easier. Plus, when all of these day-to-day financial matters are ironed out, law students can fully focus on their classes and other related activities like org events. 

2) Lawyers Often Deal with Irregular Income

While seasoned lawyers are usually fortunate enough to have a reliable income, many new lawyers may have to start with more inconsistent earnings as they build their resume. A number of bar passers may be able to immediately get big job offers from famous law firms, but some may choose to accept contractual or freelance roles with variable income, while others may join smaller law firms with a more modest salary. 

There’s no denying that financial literacy is crucial during this time, as new lawyers need to know how to manage with a smaller income while they work their way up their career ladder. The earlier they learn financial literacy skills, especially for managing limited income, the better off they will be in the future.

3) They Can Integrate Financial Literacy with Their Law Education

For lawyers who want to specialize in finance or corporate law, developing financial literacy is an investment for both their personal and professional lives. Knowing how to handle money and intricacies such as debts, taxes, or business records will lend well towards helping clients with financial problems. It can also be useful for lawyers who want to be more well-rounded and learn how to handle issues from every field of law.

4) Financial Literacy Encourages Preparation for Emergencies

One aspect of being financially literate is understanding the importance of preparing for emergencies. Having a solid backup plan for anything that might happen will make it easier for law students to bounce back, especially while they finish their education. 

Even as new lawyers, the limited income that they may receive during their first few years of practicing law will make emergency preparations absolutely essential. Early on, law students should learn and build the discipline of topping up an emergency fund. They should have a safety net that will help them stay afloat without having to accrue high-interest debt from short-term loans or credit.

5) Financial Literacy Will Help Law Students Reach Their Personal Goals

As law students work on their professional careers, they’ll also likely also have personal dreams that they want to pursue. They may want to buy a house, financially support their family, or learn more about the world of law by studying abroad. 

Knowing how to handle their funds properly can turn these dreams into achievable goals. Any law student’s effort to sharpen their financial literacy skills before they graduate law school will help them build a stable financial foundation so that they can chase after their goals without having to take unnecessary risks.

6) Greater Financial Literacy Will Help Law Students Achieve Their Professional Goals

Lastly, financial literacy is essential for accomplishing not just personal goals, such as buying a new house or car, but also professional goals. Ambitious law students, for example, may want to open their own law firm one day. But running a law firm is similar to running any other business, and so aspiring lawyers must be ready to learn how to handle operating costs, government paperwork, taxes, employee pay, and more. 

This is where learning how to handle money from a business standpoint becomes necessary. Upon developing financial literacy earlier on, future lawyers will have a better chance of succeeding as legal entrepreneurs. They will be able to handle funds wisely and make smarter financial decisions that will help their practice grow even further.

Develop Financial Literacy Early to Grow Faster as a Lawyer

For law students, knowing how to manage money and plan for the future is just as important as passing the bar exam. If you’re currently enrolled as a law student, now’s the time to work on a sense of financial literacy that will enrich both your personal and professional life.