Being a parent, you wish nothing but success for your children as they grow up, including how they organize & handle their finances. The fact is, that unless you take measures early on to equip them for their future financial decisions, there’s a bright chance they will end up like many financially illiterate adults today.
A recent survey revealed that:
Children do not comprehend the essential factors until you tell them they are vital. Especially in the case of money management, they are required to understand from an early age how to organize money. With the dynamics of the rapidly transforming world, financial literacy for children has emerged as an essential element of life. Teens are always very eager to lead a plush lifestyle on their earnings & they are desperate to stand on their own feet & spend their money to possess a lavish standard of living. The Online Financial Literacy Courses will allow Children to manage their time by applying the right concepts of money as per the requirement.
Financial literacy for children does not only signify spending money smartly, but it also reflects the tendency of saving & investing.
Why Financial Literacy Is Important for Children
You must have heard that “Information is Power”. The same theory implements in financial matters also. The more info you acquire about finances, the better-geared you will be. At the same time, a deficiency of appropriate knowledge & info about money is hazardous for everyone, especially children.
Children go to school to learn about diverse subjects. The answer is to equip in those respective domains. Likewise, education about money should be rendered on the same priority as other subjects. Children must be educated about money & how it works.
Stats reveal that children who never obtained proper education on finances end up as undependable adults, especially in financial matters. They fail to understand how to invest, they are incapable to save enough money to purchase a home & often have very poor credit scores.
Such behaviors are contrasting with those of adults who were educated about money management when they were young. Such children are capable to draw informed financial conclusions in their adulthood simply because they established a firm financial foundation in their childhood.
Quite often, young children indulged in poor money traits like gambling had never been taught or instilled poor backgrounds in financial literacy.
They easily get swayed by others to indulge in other bad financial habits. Children with a substantial financial background won’t be easily inclined to involve in bad activities such as gambling & Ponzi schemes.
For children who are taught financial literacy, it becomes a little easier to propel & jump out of any emergency compared to those who are financially illiterate.
In other terms, there are various reasons why financial literacy is mandatory for our children. They should continually be taught about how to save, invest, budget & handle debts. Failing to do so can create a generation that’s not only foolhardy but also miserable.
Even if children can’t grasp advanced money theories at a young age, they’ll require to understand them eventually. Children will start to demand & use the money to purchase toys, involve in various activities, or engage in social events like attending concerts, and games, or visiting amusement parks.
Educating children about saving & spending now will aid them to comprehend why they can’t always possess what they desire. Understanding to manage money early not only aids formulate responsibility but can enhance limit entitlement & soak delayed gratification.
Support your children to perceive expenses & that income & savings play a major role in it. Instill in them that it is important to save first & tune the expenses accordingly. Instruct them to get into a habit of apportioning some part of their pocket money aside as saving & fix a goal. This will not only teach them to perceive the worth of saving but will also impregnate them to feel a sense of freedom when it arrives to money management.
Also motivate children and teens to do a little research before buying something, such as analyzing prices & reading online reviews, to enable them to draw informed financial conclusions with their money.
It is mandatory to assist your children to realize that earning money is not an easy job instead, it requires toiling like working for a living, going to the office, etc. You can begin by illustrating to them how you as a family toil for money & enable them to grasp the meaning of a salary. This approach will make them understand the significance of money which in return would help them realize that money needs to be spent judiciously as it needs to be hard-earned.
Discussing credit is crucial in helping children & teens soak in the importance of money and the outcomes of making imperfect financial decisions. If your children demand a credit card, rather than answering an automatic “NO,” make them comprehend that it does not signify free money. Teaching them that credit card dues must be paid in full every month otherwise they will have to pay interest, which can end up costing them a commodity much more expensive than the original rate, not to mention sinking them into a tornado of debt.
Children these days are constantly online, which reflects they’re vulnerable to cyber-criminals who focus on children in the anticipation of fetching money. Guide your children to avoid online scams/frauds by teaching them the essentiality of shielding their account/online info & password. Also, illustrate to them the threats of accessing strange and suspicious links, even if they appear to arrive from a friend.
Conclusion:
Financial literacy must be started as early as possible. With financial literacy educated extensively in schools, children can grasp the skills mandatory to acquire financial freedom.
To assure that our children fully acquire all luxuries and flourishing futures, we must impregnate them with the value of money & start grooming them today. Money is an imperative commodity & it is vital to master financial literacy to obtain & maintain a decent financial lifestyle.
