Financial Literacy | Importance of Financial Education | Educate your Child
Education | Lifestyleby Bienu 30 September 2020
Importance of financial literacy amidst children
It is important that you not only literate children but also make them financially literate. Here schools can play a major role as children are in learning mode and are learning so many things there. Children start learning at a very early stage, but we (parents & schools) keep postponing teaching them about money management. Surprisingly, till their adult life, they don’t know how to manage money, how to save, how to spend?
Though parents can tell them why it is important to save money, schools can complement this by teaching how to earn and save. Now the awareness is growing and schools are deploying ways to teach children about money management.
How To Begin?
While organizing events or outings, schools can involve children for managing it all by way of collecting money, allocating for various jobs, paying vendors, arranging refreshments etc. and guide them about paying money for all these services. They can deduct the money paid from the money collected which would be profit. This way they will learn naturally how profits are made.
A bank branch can be opened in school for children where they can deposit money periodically and watch their money grow, which they can use for their purpose. They should be taught to fill depositor’s slip, withdrawal slip etc. on their own, which will motivate them to walk towards the bank.
Schools can also help develop entrepreneurship skills amongst children by indulging them in some activities which can be sold through some NGOs and proceeds to be given to special needs children. They will feel happy helping other children with their earnings.
Some More Ways
An excursion to Supermarket can be planned by the school instead of Zoo, where children may be given the same amount to shop for groceries. They should be encouraged to compare prices, offers and schemes on the products. This way they would know the value of money. They will know what all money can buy in a specific amount. A prize should be given to the child who has used the money most effectively.
Students of secondary school can take up some weekend jobs which can make them earn some money which they can spend on themselves or supplement the family income. Or they can take up summer jobs also.
Above all, most important would be to conduct workshops and skits etc. by some finance professional to teach them about saving, investment, insurance and retirement planning. Yes, they should be told about retirement, which many children think it is for old people only and will never happen to them.
Singapore is a country where smart financial planning is required to save for your sunset years or be prepared to work and earn till…