Why Financial Literacy is So Essential for Kids
Financial literacy to kids is extremely elemental in shaping their approach in dealing with money as adults. The basic notion that money comes from sheer hard work is vital. This is the lee-way to instilling in them the importance of saving and the advantages that come with savings. However, even with the vitality of financial education to the kids, we have been guilty of not taking any hid in educating the young generation on the importance of proper handling of finances. This has remarkably been experienced from the young talented generations; they have more often than not ended up been financially unstable even with massive incomes. What really is the problem? How should we teach our kids?
According to education experts at WritingAPaper.net, this is the start of financial teaching. Setting goals is the first part of the learning process. Coming up with ways in which the child will start earning a small amount of money is a good point to start. The concept of money comes from hard work will start from this point. You could have several activities that the child does and is paid for doing them properly. For example, house chores or rewarding them for doing a particular thing excellently, this will very much encourage them to work even harder. It is important to elude the notion that life works on instant gratification but rather through hard work and determination.
The choices and decisions that we make are what shapes us and sets us for failure or success. Financial decisions and choices are as fundamental as life choices. It is then invaluable in teaching the children on how to make the appropriate decisions. This should be done by, for example, giving a small amount of money to the kid and let them decide on how they wish to use the money. Making the right financial decisions is a major problem that most adults struggle with. The child should be able to differentiate between their needs and wants. What is really essential for their lives and what is a luxury to them. In making them understand this concept they will be able to prioritize on what is very important to them and what is not. The lesson on choices makes the biggest impact to the child in saving more than they spend.
Short-term saving is the first step in teaching on savings, however, long-term saving is the most important of the whole process. It is important to make them understand how the first lesson on patience really applies here. They should be able to understand that it may take almost an entire childhood to be able to save up for their college education. This however is when you give them a good personal example that works to encourage them. It is also important as it helps them understand on investment that acts as long-term savings plan. It simply shows the kid that even though they save for short-term goals that do not really provide any form of financial security to them.
The three lessons simply lay ground for the complex financial systems in the future of the kids. It forms the background for their financial security which will come in handy in handling huge sums of money. This background will help create a holistic young generation that will be able to have necessary skills to ensure both individual and society development.
Ben is an elementary school teacher having devoted over 7 years of his life to enlightening children. He is also an avid blogger writing on education related topics. One of his recent articles is on how to write a graduate admission essay.