Financial Literacy For Students
Learning neither can happen overnight nor can be achieved by reading just one or two books, it is a process that happens slowly but surely through education, practical experience, and life lessons.
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“The students spend an average of 15 to 17 years of their early lives gaining skills that will help them command a higher salary yet little or no time is spent helping them save, invest and grow their money.” This saying sums up the importance of financial literacy perfectly.
Bygone are the days when money matters used to be the thing associated with adults only. Fast forward to 2021, the time has changed now. In today’s day and age, it’s important for children to at least know the basics of finance such as the essence of the stock market, entrepreneurship, spending, saving, and investing. However, on the contrary, financial literacy is one of the most neglected components of a kid’s education.
Interestingly, a study undertaken by the University of Cambridge, suggests that a kids’ financial habits are usually set by the age of seven. What develops through their early years of learning becomes the base of their knowledge. There are many reports that indicate children’s growth and learning are very much dependent upon the kind of environment they live in and their experiences. Hence, one should consider financial literacy a vital aspect of effective holistic education. It is just as important as the other basics in life as it’s a fact that children will someday have to take financial decisions in their lives. And if we miss the early opportunity to teach them financial literacy, we’re jeopardizing their future.
Inculcate the habit of reading
Learning neither can happen overnight nor can be achieved by reading just one or two books. It is a process that happens slowly but surely through education, practical experience, and life lessons. The need of the hour is to introduce children to financial literacy in their early childhood so that they can relish the fruits in their retirement stage.
Since they are just little kids and books with technical terms, full of jargon and hardcore concepts won’t be easily comprehensible for them, it’s important to introduce non-fiction personal finance books. They can simplify the process of financial planning and will take them through the entire subject with ease. From managing personal finances, deciphering the stock market, investments to clearing debts, such books incorporate everything.
Till the time, schools and other educational institutes don’t include “finance” as a separate subject in their curriculum, parents can help their children to start at home. They can advise them to begin with a topic that they are most interested in.
Learning finances early make kids aware of the hard-hitting realities of life
Reading is the key to bring them a step closer to the brutal realities of life. The books will not only make them aware of the pros of managing finances wisely but will also make them learn about the cons of wasting money and the associated aftermaths with it, which can eventually put their very existence in danger. Reading real accounts and practices will prompt children to spend finances properly in the present so as to have a secured future. They will be saved from lifelong financial issues, directly benefitting the economy of a particular country.
Break the monotony
Apart from reading, there’s an inherent need to get their hands dirty. In other words, practical involvement is necessary. For example, try teaching the children to open and operate a bank account, rather than giving them lectures. They will be in a better position to understand real-world concepts. After all, multisensory experience makes them better at learning.
Only through such tiny practices, will they become more responsible citizens, which will, in turn, help them to live a quality life.
In order to steer through the present-day financial landscape, it’s very important that financial education is introduced to children at the grassroots level because it’s, undoubtedly, an indispensable life skill. Make students financial-savvy today.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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