Financial Education is an understanding of knowing how money is made, spent, and saved, as well as how money works. It is the technique of investing and managing worth and the skills and ability to make a decision to maintain financial resources in the best way.
Why is Financial Education important?
Financial Education provides us with the knowledge and technique we need to operate flawlessly. Without financial expertise, we won’t be able to make proper decisions about business investment and procedures. And without any adequate decision and knowledge on any subject, it is impossible to be successful in that area.
Without minimum financial literacy, people make the wrong decisions or actions, and hence, they lose money saved for years and hard work. Unscrupulous life insurance agents cheat the people who don’t have enough financial education. Financially illiterate people can be cheated from loans which are availed without understanding interest payments and the consequences of a default.
So, it is essential and recommended that the youth generation, who are the future of a nation, should learn financial education accurately. Financial Education will help them to have a bright future and career. Lack of enough and right financial literacy is a heavy burden on the country. In this context, we will discuss the importance of financial education for the youth generation.
Why is Financial Education Essential for Youth?
Most people think that kids don’t need to know about money. So, why is financial education essential for youth? The reason is that if they don’t teach about good money habits, children will pick up and emulate the relationships with the money of the adults in their lives. When they learn financial education at the beginning of youth age, they will become less responsive to the people of money throughout them. If any youth know the proper money management techniques, they will never waste money, and they will spend money on their lives. Financial Education at the beginning of the child teaches them how to spend money properly and how to make good relationship with money.
Is Financial Education Essential Skill For Youth?
Financial Education is essential for kids or youth, and it is also necessary in general. In a fast-evolving economy system that evaluates technical pieces of knowledge, financial literacy is like caught a backseat to STEM knowledge. A financially educated youth knows the essentiality of economic adjustment.
Financial Education should be presented at the school stage to teach it the youths. This literary will turn and educate the child to save and invest, making the country a developed nation. Financial Education is essential for all of the citizens and more necessary for less financial educated citizens to help them to save their future.
What is the responsibility of parents?
It is the duty and responsibility of every parent to teach their child financial literature. It is very much essential to build the bright future of their children. This education will make changes to their children’s minds, thinking ability, making decisions, and other related things essential to have a good future.
To teach children financial literacy, parents should find qualified financial institutions. Besides parents, it is a mandatory responsibility of any government to create the right and enough space for teaching financial education. Because, if their youth citizens are not well educated at financial literacy, then how will their country developed!! So, every government has a huge responsibility to help their youth citizens learn financial literacy.
Positive Impacts of Youth Becoming Financial Educated
Research from the Federal Deposit Insurance Corporation showed that buyers were more likely to have a checking account, budget wisely, save for privacy, and more. After this program is done, it is found that 78% of participants had a checking account, and this percentage before the program was 12%. Another research showed that 69% of participants increased their saving level after taking the program.
This same research on students showed that students who had this Money Talks educational curriculum made a positive habit and behavioral change. Their saving scale has been improved as the mean value of the saving scale rose to form a mean of 24.3 to 26.8, and it was statistically significant.
Financial Education in Youth Leads to Ill-Equipped Adults
58% of 18-26-year-olds set apart a portion of their money as savings (Bank of America).
44% of Americans aged 22-26 do their taxes (Bank of America).
57% of millennials have either an advisor or Robo advisor (Money Confident Kids).
46% of Americans claim that they have set apart 3 months’ worth of maintenance expenses in the case of urgency (US Financial Capability).
What Expert’s opinion about the Importance of Financial Education for Youth Generation?
“Financial Education is not an end in itself but continues the step-by-step process. It begins in childhood and continues throughout a person’s life all the way to retirement. Instilling the financial-literacy message in children is especially important because they will carry it for the rest of their lives.” – George Karl, former NBA coach
“Financial literacy is an issue that should command our attention because many Americans are not adequately organizing finances for their education, healthcare, and retirement.” – Ron Lewis, former United States Representative
“Academic qualifications are important, and so is financial education. They’re both important, and schools are forgetting one of them.” – Robert Kiyosaki, founder of the Rich Dad Company
Managing director of the International Monetary Fund, Christine Lagarde, urges partnerships to be formed with the resource wealthy private sector, which can help programs extended their reach within impoverished communities (International Monetary Fund). https://www.imf.org