Financial Education For Children And Adolescents
Today, financial education has become an essential knowledge for all people, including children and adolescents. The small, although not a direct part of the economy, are indirect users of financial services.
This is because financial illiteracy has reached the point where the common citizen tends to feel more helpless and confused every day. Above all, in terms of situations such as:
- The price increase.
- The limitation of credits.
- The real estate crises.
- The scarcity of savings.
- Layoffs, bankruptcies and evictions.
For these and for others, young people are victims of a system that they fail to understand due to lack of information.
Why is financial education important for children and adolescents?
Although the young are often the most exposed to erroneous beliefs and habits, also they have a greater capacity for learning. That is why it is convenient to provide them with solid financial knowledge.
In this way, they will not only be able to notice those situations that may disadvantage them in the future. They will also be able to learn from childhood the principles and skills necessary to secure their financial belongings, such as:
- Understanding the relationships that exist in money transactions.
- The benefits of investments, credit and savings.
- Problems with debt and taxes.
- The benefits of work.
In addition, financial education will also induce recognition of what is wanted, what is needed, and what can be done.
How is financial education transmitted to young people?
When providing financial education to young people, it is necessary to impart financial knowledge that goes beyond money management. You should start with the basic concepts and gradually deepen as you understand the basis of the theory.
The most effective way to induce this knowledge in children and adolescents is through recreational activities. In this way, their incentive and interest will increase, such as talks, workshops, games, classes and exhibitions.
It is also important to introduce them to the subject in a practical, motivating and imaginative way. At the same time, it is better to use the correct tools and language, taking into account the codes of conduct of each young person.
However, it is essential that the young person has the ability to understand by their own assimilation and not by imposition that all their actions have economic consequences that may affect them in the future, whether in the short or long term.
When should you start teaching financial values?
In order for the young person to be able to internalize and understand the fact that the economy should not be detached from human values, it is necessary to start as soon as possible.
The reasons that make it necessary to teach these subjects are publicity and excess information. Both are supported by technology, which is present in the life of each young person and which usually has an enormous influence on their behavior.
In this way , the reception of those erroneous concepts that are usually manipulated by the system will also be prevented.
Through the intervention in their education and in the assimilation of economic and financial issues, we will provide a solid foundation that will be very useful for them in the future.
How is financial education evolving in children and adolescents?
Once the fundamental concepts have been taught and assimilated, they will evolve as the young person matures and approaches adolescence.
In this stage, the adolescent will consolidate those previously acquired concepts. In addition, you will be able to develop skills to make your own well-reasoned financial decisions, such as:
- The management of the budgets.
- The use of the products.
- The benefits of financial services.
In this way, the young person will also be able to notably improve their financial habits, spending and investing their money in a productive way, avoiding debts and promoting savings.
How to encourage financial education from home?
Finally, to motivate the development of economic training given to the youngest and help in the process, it is important to provide them with their own judgments and behaviors, taking each decision made as a model.
The example of close people can be even more important to young people than any other kind of teaching. It is important to make them value their possessions and money and also know how to act when it is necessary to put their knowledge into practice.
