Money is an integral part of everybody’s lives. It can be a sensitive topic to discuss, but it is essential to speak about finances to get more knowledge on the same.
According to a study, three-fourth of the people in the UK are under financial stress. This indicates that this topic cannot be avoided for long and has to be discussed to solve the existing financial issues.
These financial issues aggravate mental health issues leading to depression and anxiety problems. Many people go through financial issues in their life and cannot handle the situation in a good way.
Many direct lenders and financial institutions offer loan facilities to such people to cater to their financial needs. These facilities are offered worldwide and in every county such as UK, Australia, Germany, etc.
Lenders provide loans for unemployed people in the UK as well to maintain financial balance in people’s lives. We can ask a question to ourselves, where are we going wrong, and what can be done to solve these financial issues?
The answer to this question is financial education. The second question arises, when should we start educating people about finances? Should financial education and budgeting be imparted at a young age or an older age?
The answer to this question is to start from a young age to form a strong financial foundation. Financial education is rarely a part of the curriculum and is not given attention to this young age.
Once children grow up, they suddenly have to bear the pressure of managing their finances, which comes as a shock to them, and they cannot manage their finances efficiently.
This blog elaborates on the importance of financial education and budgeting at a young age:
Lately, financial education has been made a part of the national curriculum. Various topics are covered under this: savings, expenditures, mortgages, insurances, and other financial products.
Financial education is new to everybody, so every teacher has a different approach to explaining the concept. These financial concepts are important to impart to be financially stable.
Some financial concepts, such as compound interest, loans, etc. are common everywhere.
Because of the complexities of these financial topics, it becomes difficult to implement them at basic levels. Mathematics is a common subject in every school, but the discussion includes other complex subjects such as trigonometry and many other things.
Finances are an important aspect of life skills that may become tedious to teach in schools and institutions. It can be a complex job to make young people understand as they are not used to it.
These financial lessons are way far than other subjects such as English, Science, etc. In the absence of financial knowledge, kids grow up to a detrimental life.
Many schools have adopted innovative ideas to deal with this situation. One primary school created its bank to improve the standard of financial literacy in their school.
There is much opposition to the concept of introducing financial lessons at the initial stage as many people believe that the parent has to teach this to their kids.
People believe that home is the best place to learn about finances, and children learn the value of money best from their parents.
Due to the current education system, financial education cannot be made a mandatory part of academics, leaving a loophole in the system.
With financial education as an option in the curriculum, many children will prefer to miss out on it. Many schools have compartmentalized it in general ‘citizenship’ lessons.
According to research, there are gaps seen in the financial management of millennials. There is a vast difference in the spending pattern of today’s generation and the previous generation. Today’s generation is more casual in their approach as compared to their predecessors.
Millennial’s spending habits and financial knowledge points towards vast disparity in their financial knowledge and budgeting attitude.
According to a study, 65% of millennials are ready to spend more than £3 on a cup of coffee. In contrast, the previous generation born between 1946- 1964 may not be readily convinced to spend this amount on caffeine.
The absence of financial knowledge during the early years has caused a discrepancy between the actual knowledge and the spending pattern of the youth.
Today’s generation is under the illusion that the amount of money earned is inversely proportional to debt-owned. Also, it is becoming difficult for them to imbibe the quality of sacrifice for the sake of budgeting.
Teenage years are the molding years of life and can create long-lasting impressions. As per a survey, 45% of teenagers wanted to learn about finances from their parents and wanted to indulge in financial conversations.
Whereas 30 % of the teenagers have presented themselves as aware of the credit card fees and other financial details.
Teenage years are an important aspect of the learning cycle of an individual, so financial education should be made a part of these years to make every individual financially independent and stable.
Optimistically, financial lessons should be made an integral part of the school curriculum, and financial knowledge will positively impact the young generation. These financial skills will liberate individuals from making their own decisions and steering their lives in the right direction.