Arithmetic is the toolkit every later course quietly depends on: whole numbers, fractions, decimals, percentages and the order in which operations are carried out. Most mistakes students make in algebra and calculus are really arithmetic slips, such as dropping a negative sign or adding fractions without a common denominator.
The ideas are few but they are used constantly. Place value explains why decimals line up the way they do, factors and multiples explain how fractions simplify, and percentages are fractions with a denominator of 100. Once those connections are clear, a long list of rules turns into a handful of ideas that support each other.
Arithmetic shows up every day outside school: splitting a bill, comparing unit prices, working out a tip or a sale price, converting a recipe, and checking that a pay slip adds up. Fluency here also makes standardized tests faster, because less time goes into routine calculation and more into reading the problem.