Teaching Financial Literacy To Kids – The Basics Of Saving

Financial literacy is the capability of understanding how money works in our lives. With this, practical financial literacy should be taught to children at an early age. Unfortunately, most schools and colleges do not teach kids about financial education. Yes, they are taught professional education on many subject areas but not on skills they need to use every day such as money management. As a result, young people are not financially conscious. This should be addressed so that they can learn how to set aside money for the rainy days, grow their savings, and lay down financial goals to live the kind of lifestyle they desire in the future.

More Profound Reasons to Teach Financial Literacy to Children

Financial literacy should be imparted to children so they acquire fundamental knowledge and understanding of personal finance before they leave school. This is one way of preparing the next generation into more responsible citizens because older generations in the UK are financially illiterate. In fact, the country has the highest levels of personal debt per capita of any other country within the G-20 nations (comprised of the world’s largest advanced and emerging economies). This means that UK’s personal debt crisis has worsened by over 350% in the last decade. Drastic measures should be put in place, starting with the county’s citizens, to address the issue of how they manage their finances. By putting up advocacy for financial management, the government is by process, equipping its workforce with the necessary skills to foster economic growth.

What to Do to Teach Children Financial Education

There are some schools that already include personal finance education in their curriculum, but provision is at best unplanned. Limiting factors face some schools in teaching financial literacy such as demands on curriculum time; the lack of statutory mandate; deficiency of appropriate training for teachers; lack of teacher subject knowledge, expertise and self-belief among many others. However, now that society has realized the necessity of educating children on financial management, this advocacy has earned support of both the public and parliamentarians.

So, how do we teach our children this very important subject? The following can be adopted

1. Financial literacy lessons in schools should be made simple and fun (i.e. saving on a piggy bank).

2. Essential topics should be covered in the lesson such as the importance of money; savings; skill set foundation; addressing negative associations with money; and financial foundation.

3. Integrating financial capability lessons through Math (as this is the perfect subject where children start their number comprehension).

As the government turns its attention on financial education for children, let us not discount the fact, that we too, have the responsibility of teaching our own children the significance of being financially literate. The world is changing day by day and as we are approaching another level of technological era and population boom, it is important that we are preparing our children for the future. When our children develop money saving habits and financial management skills early in life, it would be safe to say that there would be hardly any bankruptcies or foreclosures and fewer people struggling to make ends meet.

Education is an important aspect of a child’s future, by contacting csa phone number you can get monetary support for your child’s future.