Financial literacy is the ability to understand and effectively use various financial skills, including financial management, investing and, budgeting.
When you are financially literate, you have the basis for a smart relationship with money that will start a lifelong journey of learning about the financial aspects of your life. The earlier you start the better off you will be, because when it comes to money, education is the key to success.
For every individual today, financial literacy is the key to living our everyday lives with dignity. It is also “a gift” to ourselves, in order to be dignified citizens of the world.
Studies show that young people have amongst the lowest levels of financial literacy. This is mainly reflected in their inability to choose the correct financial products and the lack of interest in undertaking serious financial planning.
From childhood, kids need to develop financial skills to help them choose between different careers and education options, hence manage any discretionary funds they might have, whether from a part-time job, pocket money or allowances, children need to both understand how to use a savings account and set a budget.
For this reason, we should encourage schools to train teachers and parents in order to provide financial education for children and youth to prepare the future generation with better knowledge and skills to make effective and responsible decisions in the complex reality of the 21st century.
Author: Catherine Perri – JUMP Trainer