In the past, school simply taught math, but not how to pay bills or save for a big purchase. Today, financial literacy in school has become the norm.
Children are encountering money earlier and earlier:
- They get pocket money
- have been using the card since they were little
- shop online
- hear about the loans
Learning financial literacy as a child empowers a person to properly manage money throughout life.
In financial literacy education, children learn simple things rather than complex economics:
- how to budget for the week
- the difference between «want» and «need»
- how to put aside some of your pocket money
Money is no longer an abstraction for children. It becomes part of everyday life. A means to get what they want.
How learning about finances affects a child's development
With the study of finances, the child learns to make decisions for himself. For example, do you want to spend all your pocket money today or put some aside for tomorrow?
Such choices train the brain - the child learns to think about the consequences. This is one of the main skills of the 21st century, which will come in handy not only with money, but also in study, communication, and future work.
The second plus is responsibility. A child who allocates his own money for the month realizes that every purchase is his choice. He learns to be responsible for his decisions.
Not «mom didn't give it to me», but «I decided to spend it myself». This is how independence is formed - a quality that will be useful in adulthood.
Role of school and parents
A school program with financial literacy is a basis for, but not a substitute for, family education. It is only at home that a child sees how parents manage money.
It is best when school and family work together. In class, your child learns how to budget, and at home he or she helps plan the cost of the family holiday.
Financial literacy should not be in a child's life for the sake of teaching them about money from an early age. Money is only a means. But without proper handling of it, the whole future life can be extremely uncomfortable.
