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Are you worried about your child’s financial future? Yes? You should be! Because the education system and parents alike aren’t talking enough about personal finances with their kids. You are taking care of the finances for your child now, but they will grow up and face the world. Right? They will face investment issues, debt, expenditure, and saving for rainy day issues. But how will they manage all this without understanding how the finances work? If they don’t understand finances, making a wise decision in this regard seems like a fluke call.
Thus, the need for financial education arises. Unfortunately, most schools teach every other subject but not financial education. This one subject on which their future depends because we all know the importance of money is being ignored. On the other hand, every other subject is being taught with a full furrow. You tell me, do they need to learn to manage their money more or how to calculate the area of the trapezoid more? The former, right! Here are some reasons to convince more parents and schools about the importance of financial education.
Money influences every decision
Most kids set out in the real world when they are 18. Since this age, every decision they make from graduation to retirement relies on their financial education. They will face problems later if they don’t know anything about finances or how to manage debt or save money. Even getting married or buying their first home relies heavily on how much they know about finances.
Every day, you have to think about money and make small or big financial decisions, and you cannot make one without understanding the core concept.
Young graduates have more debt today
Compared to before, students in college have more debt to pay by the time they graduate and look for work. It happens because of the ease of debit or credit available to them. Moreover, their temptations to buy more and more goods due to online shopping keep increasing.
If these students had learned about credit, managing debt, and more personal finances in college, the current debt they have to pay would have been less. Therefore, it is essential to start young, and this can happen only when schools teach about finances.
Without financial knowledge, consequences can be fatal
One of the primary reasons for stress and anxiety amongst adults today is finances. No matter how rich or poor you are, financial stress is there, and sometimes it can lead to worse consequences like extreme debt, health problems, bad habits, depression, bankruptcy, and even suicide.
- Do you know that most people around the globe don’t have enough cash to survive a medical emergency seemingly of low value?
- More than half the millennials start their careers with a debt they have no idea how to pay? It impacts their saving ability.
All this can be dealt with properly by introducing financial education in schools. And we don’t mean in the later grades; start from the very first grade so that even little kids can understand the importance of savings.
The government will not have their back
Our parents and their parents enjoyed a peaceful retirement life as the government paid them retirement bonuses. But unfortunately, the same is not true for this generation. If you are investing wisely or saving money, you can only enjoy an incredible life after a certain age. Otherwise, you will have to work for the rest of your life.
Not every child has the same choices
Every child is different. Some children have parents with money in stocks that can help the child later. Others don’t! Some children will get better chances in the future, while others won’t. However, if every kid learns the importance of finances and how to handle them, they have an equal chance and opportunity to handle their money well. It can be a massive difference between living and surviving.
If the child understands the importance of hard-earned money and how to keep their finances in check, it can be the difference between prosperity & poverty. So, look for financial education in school and start talking about the same at home too.