This article analyzes the challenges in teaching Applied Mathematics in higher education and suggests ways to overcome them. The main purpose of the study is to develop students’ skills in applying theoretical knowledge to real-life situations. The key problem identified is the insufficient understanding of the concept of function, which leads to difficulties in applying mathematical concepts such as derivatives and integrals in practice. As a methodology, mathematical modeling, analysis through real-life examples, and observational approaches were employed. The findings indicate that the use of practical examples and modeling methods increases students’ interest in the subject and fosters the development of skills necessary for their professional careers. In conclusion, it is recommended to widely implement practical examples and modeling approaches in the teaching process.