Why Financial Literacy is Important for Kids?

Why Financial Literacy is Important for Kids? 

There has been an ongoing quandary of whether one is too young to be able to do what they want or not.  This argument occurs about the factors that relate to one’s life. Too young to drive; too young to journey alone, too young to watch a horrifying movie.  For instance, the argument of not being able to understand the legal guidelines of driving if you are too young or getting scared when you watch a film unsuited for your age and then unable to sleep for weeks can be understandable. Notwithstanding, how can one be too young, to be made conscious of the financial capabilities needed during their life.

From the time we are introduced into the world, money is used to ensure we survive, from the budget our mother and father made to prepare for our arrival, to the college funds they put aside for our future. Some argue that you do not need money when you are young, due to the fact your parents’ shoulder that burden. While that can be true, a survey conducted via the American Institute of Certified Public Accountants saw that two-thirds of parents gave their children an allowance. Why would they give them an allowance if they do not need the money? That is executed to awaken some consciousness in their kids regarding the responsibilities of using said money.

Kids are taught everything they comprehend at secondary school. What is the point of that assertion when the knowledge that one needs about finances is not being taught in said school? The argument that the bestowment of such financial skills ought to be left up to the parents has been asserted, however, schools would no longer be needed if parents can teach kids what they know. Schools were made to ensure that the competencies needed for individuals to emerge as hardworking model citizens were taught. Is it not also crucial for that citizen to be able to make a suitable budget, do applicable taxes, and maintain an excellent credit score? One would agree that it is!

Howard Dvorkin CPA and chairperson of Debt.com stated "It's human nature to expect the best and not plan for the worst, so many otherwise smart Americans refuse to budget – because they do not think they need it.” Notably so, however, were these said Americans taught financial capabilities in school, he would have had a different perspective.

The reality that money is used each day is the exact reason why the way to manage it ought to be taught. Money use is not a choice that can be avoided because it is needed to conduct most if not all types of transactions. As a result, how it is treated can have negative or positive outcomes in one's life. Those with opposing views assume that money is not everything, while that is true, they can agree that money is important, and the truth that it is should add weight to the motives behind education being needed.

Life can be a burden without the use of financial abilities to which the exact opposite can be said. Thus, in conclusion, the abilities needed to use one’s finances throughout life are a necessity. The more conscious one is of the reality that financial independence is one of the many requirements needed to make life enjoyable, the less of a burden the struggles that come with existence can be. What better time to acquire these important skills if not at the point when one is being educated at the secondary level.