Money is crucial in 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-fourths of the people in the UK are under financial stress. This indicates that this topic cannot be avoided for long. It has to be discussed to solve the existing financial issues.
These financial issues aggravate mental health issues leading to anxiety issues and depression. Many people go through financial issues in their life and are unable to handle the situation in a good way.
Learning finances from scratch
Many lenders and financial institutions offer loan facilities to such people. This caters to their financial needs. These facilities are offered around the globe.
Lenders provide payday money loans with no credit check to maintain financial balance in people’s lives. We can ask question a ourselves, where are we going wrong, and what can be done to solve these financial issues?
The solution to this issue 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 solution is to start from a young age to form a strong financial base. Financial education is rarely a part of the curriculum and is not given attention at this young age.
Once children grow up, they have to bear the burden of their financial management. This is a shock to them, and they cannot manage their finances.
This blog elaborates on the importance of financial techniques. It also states the significance of budgeting at a young age.
Why teach financial education at a young age?
Lately, financial education has been made a part of the national curriculum. Various topics are covered under this. They include 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 essential to impart to be financially stable.
Some financial concepts, such as compound interest, loans, etc. are common everywhere. For example, you should know the details if you wish to avail of a loan on benefits. In the UK, many people teach their young ones about finances. If they do not do so, it can lead to their financial downfall.
Because of the complexities of these financial topics, it becomes difficult to install them at basic levels. There can be basic concepts started at a young age. For example, the children can have practical exposure to the currency. This will keep them on track to learning about finances.
Mathematics is a common subject in every school. But the discussion is of including another complex subject. They include trigonometry and many other things.
As reported by parents, the share of children with financial school education in the UK in 2021
The change in curriculum
Finances are an essential aspect of life skills. They 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 less preferred than science and English. In the absence of financial knowledge, kids grow up in a detrimental life.
Many schools have adopted innovative ideas to deal with this situation. A primary school created its bank to improve the financial standards in its school.
There is much resistance to the introduction of financial lessons at the initial stage. Many parents believe that it is their duty to teach this to their kids.
People believe that home is the best place to learn about finances. Hence, children learn the value of money best from their parents.
Due to the current system, financial education cannot be a mandate in academics. This leaves 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.
Changes in the ‘millennial’ era
According to research, there are gaps in millennial financial management. There is a vast difference in the spending pattern of today and the previous generation. Today’s generation is more casual in its approach as compared to its predecessors.
Millennial spending habits point to the 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. At the same time, the previous generation may not be convinced of the same.
The Vitality of financial knowledge
The absence of financial knowledge during the early years has caused a discrepancy. This is between the actual knowledge and the spending pattern of the youth.
Today’s generation believes that the money earned is inversely proportional to the debt owed. Also, it is becoming difficult for them to imbibe the quality of sacrifice for the sake of budgeting.
The 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. They wanted to indulge in financial conversations.
On the other hand, 30 % of the teenagers presented themselves an aware citizen. They know about the credit card fees and other financial details.
The teenage years are an essential aspect of the learning circle of an individual. So financial education should be made a part of these years. This will make every individual financially independent and stable.
Financial lessons should be made an integral part of the school curriculum. Financial knowledge will have a positive impression on the young generation.
These financial skills will liberate individuals from making their own decisions. Also, it will steer their life in the right direction.
The relevance of financial knowledge is known when you are stuck in a crisis. It is crucial to understand the basic concept of finances.
This will help you to have a normal life ahead. Many people ignore the importance of financial concepts.
Do not be one of them. Instead, make sure to gain as much knowledge as possible. Once you have achieved that level, you can pave the way for a secure future.