Financial literacy is now an inclusive concern in the face of social and life’s challenges. No one is exempted from learning the key concept of financial literacy, which guards and ensures an individual with a well-directed path.
According to Investopedia (2019), “financial literacy focuses on the knowledge and skills you need to make effective and informed money management decisions. Personal financial literacy encompasses a range of money topics, from everyday skills such as balancing a checkbook to long-term planning for retirement.”
Yes, money is earthly, transitory. Many might have believed that financial literacy is of no use. You might have thought of cash as a temporary, but it is what smoothly makes you pursue other things without compromise.
There may be many forms of help. You can extend your hands in various humanitarian services even penniless. You can help an old cross the street; you can clean your house and make your parents happy, but not in terms of satiating the other people’s stomach.
How can a family think of hanging around if the stomach is empty? How can you help other people if you do not even get the things you need? As much as we want to help other people, we are sometimes limited by the fact that we lack money to drive ourselves to buying supplies for the less fortunate children.
Financial literacy is the all-time partner along with the other micro skills people need today.
Why do students need financial literacy?
Students in elementary and secondary schools should be taught with financial literacy. Among many, they are the ones who are aggressive in terms of money spending. Research says that children depend merely on daily cash allowance provided by their parents , buy in the canteen and the cycle repeats.
Why do kids need financial literacy?
There are only estimated less than 10% financially literate people, and less than 1% among children. Are you one of them? Are your kids?
- Does your child obey you when you say ‘no’ to buying an out-of-budget item?
- Does your child save money instead of buying unnecessary things?
- Does your child have a piggy bank?
It is very important for the students to learn what and when to buy things. Prioritization is a must-learn nowadays. As young as the elementary and secondary students are, they should learn to appreciate the value of money.
Growing individuals should be aware that bought things did not happen so easy. Try to ask yourselves the following questions?
- Does you child know that to have material things they desire, you have to work and work harder?
It is not about counting and murmuring. Gentle and smooth coaching to the kids results to a productive days ahead. It is about preparing them to the most practical world out there. The children, in many cases, are a reflection of who raised them.
There are times when students want to buy things that are not covered by their personal allowance and their parents, too. If they have savings, they can, at least, buy something for themselves without asking anything from their parents.
If a public highschooler has 20 pesos in a day (for example), and spends only 10 pesos, he can save 50 pesos in a week or more or less 200 pesos in a month. Financial literacy now speaks as to how he is going to spend the cash profitably or productively. He can just keep it or buy something that can make him happy.
If they graduate, they will probably be living alone… independently. This time, their learning can be a way for them to balance their ways, their checkbooks, their salary… and stand independently as possible.
4. Future direction
Nobody wants to make their hard-earned education and efforts go to waste. Other than learning the core values of education, studying for loooong years is endured because we, parents, want to make our children be the best version of themselves. They can be the future leaders and builders of the nation. Their experience with you can just simply be a compass they can use in many years to come. Financial literacy, indeed, prepares an individual to life.
Financial literacy may just be a micro lesson, but mastering it can as well master the macro concepts of life.