Editor’s Note: Bhavana Chirumamilla, Ridhi Rentala and Akshara Prathabraj, are part of FBLA (Future Business Leaders of America) at Tompkins High School, and their team is currently working on a project to educate the Katy community about the American enterprise system. The Katy Times is honored to print their essay.

The American Enterprise System provides the freedom to start and run a business with minimal government interference, allowing Americans to make their own economic decisions. As members of the FBLA (Future Business Leaders of America) chapter, we believe it’s essential to educate our peers about this economic system. Although many citizens are aware of this system, many do not fully participate in this system.

According to Bryant (2024), “Without financial literacy…we cannot make informed financial decisions.” This lack of financial literacy can hinder economic growth, as it prevents many from actively engaging in the economy. Increased economic growth leads to more jobs, higher wages, a rise in national income, and an overall improved standard of living, helping lift people out of poverty. However, this growth doesn’t happen on its own; “The more [that] people are involved in economic activities, such as earning, spending, saving, and investing, [then] the more robust the economy becomes” (Bryant, 2024).

A big factor in being able to have growth in this system is knowing basic financial literacy. So, let’s dumb it down. What exactly is financial literacy? Financial literacy is the ability to make decisions about money. It has essential skills like budgeting, saving, investing, and managing debt. Budgeting is the first step, it helps individuals track income and expenses, ensuring they live within their means. Saving is crucial and setting aside money for emergencies can provide financial security. Investing allows individuals to grow their wealth over time. Understanding basic investments, such as stocks and bonds, is also important for achieving long-term financial goals.

Entrepreneurship is a major part of the American Enterprise System. What is it, some might ask? Entrepreneurship involves starting and running a business with the goal of making a profit or a difference. At its core, entrepreneurship begins with an idea—a unique product, service, or solution that meets a need in the market.

Once an entrepreneur has an idea, the next step is to create a business plan. This plan outlines the business’s goals, strategies, and how it will operate. It serves as a map for success and is essential for securing funding. Entrepreneurs often need money to start their businesses.

So many people stop at this step as they worry about financing their business. But don’t forget that it’s always possible to find loans or investors. Maybe even your personal savings. After securing funding, entrepreneurs focus on building their business. This includes setting up operations, creating the product or service, and marketing it to potential customers. Managing the business effectively is crucial, as it involves overseeing daily operations, finances, and customer relations. Entrepreneurship plays a vital

role in the economy by fostering innovation and creating jobs. Entrepreneurs take risks, and while not every venture succeeds, their efforts contribute to economic growth and development.

Through our work in FBLA, we aim to share this knowledge with our peers, helping them succeed in the business world.

References: Bryant, M. (2024). The importance of financial literacy in the American economy. CNBC.