Financial Literacy

Before I will start discussing about my topic. I will just ask you a question.

Have you ever been taught on how to handle money when you are still young?

I was just wondering if, is there a requirement age to educate children about handling money?

The reason why young adults nowadays do not know how to handle their money, it's because when they are still young, they were not taught on how to.

Do our past affects our present, wherein on how you were raised greatly affect on the way we view life?

In school, during my elementary days, there is no subject wherein we are taught on how to handle money. There is no financial education during my elementary days, I just do not have idea right now if this are now being taught in school.

I have here lists, you can add some if you have something to share, if why do children needs to have learnings about finances.

Reasons if why do school needs to provide financial literacy

• Childrens were not taught in their respective homes about finances

Parents usually do not fully allow their children to manage / handle money. They will just give their child coins to buy food but not large amount of moneys because of the fear that they might lose / misplace the money.

One scenario is when during Christmas or even the birthday of the child, his / her Godparents usually gives the child money. And what do usually mothers / parents do? They get it from their child because of fear that they might lost it or maybe to avoid the child to buy something that are unnecessary.

• Childrens must know the value of money in our life

If you are a parent, you can relate to this. Most young people now do not really know how valuable money is.

They do not know on how difficult it is to earn money not unless, you as a parent have high salaries, that you can almost afford everything that your child wants you to buy.

• They must know the basics on how to manage money like budgeting, spending and saving.

We just do not need knowledge about this, we should also have skills on how to do this.

Based on my observation, some young adults just keeps on spending and spending moneys that as if they money is easily earned.

Some students just keeps on eating outside instead of them just eating in their homes or bringing their packed lunch. Eating outside is costly. Like as if they do not know how their parents strive so that they can earn money.

Kids also always asks their parents to buy them something and if the parents refused to, the children gets mad.

Young adults also gets easily tempted in buying onlines just like online shopping, food delivery. They easily get tempted to buy something that are unnecesarry, they just wanna buy it because they just wanted to.

• Many people do not know the value of saving

Young adults have this kind of mentality of "YOLO" (You Only Live Once) that is why they just wanna have fun sometimes, their earnings only goes to travelling, etc.

*Disclaimer: This are not intended for all. Some people who travels a lot have their savings, so it is just okay to travel. I am pertaining to people who prioritize spending their money without any savings at all.

Young adults who do not care about the value of saving, are not prepared on future scenarios just like, when you get sick, lost a job. And when this happens, that is the only time that the reality will slapped them the value of money.

• Young people / children has the capacity to make money in their own little way

I know, people who are into crypto currency are aware of the P2E (Play to Earn) games. One of them which is famous now is Axie Infinity. Though there is investment here but they can earn without investing just apply as an scholar.

We, young adults must be matured enough of handling money. If you are just like me who is working, why not starting saving some part of your earnings? And ler the equation will be SPENDINGS = EARNINGS less SAVINGS, not EARNINGS less SPENDINGS = SAVINGS.

To sum up this article, young people must know the basic money skills for them to be financially responsible are:

• EARNING

They must know how to earn. Best example here is the NFT games.

• SAVING

They must know how to save money. It is not all about on how much money we earn but it is all about on how much money we keep.

• BUDGETING

Educate them about wise spending. Needs first before wants. If it is not a necessity, jusy buy it when you have extra money (not the money for emergency funds)

We must avoid borrowing money when your purpose is not that important.

• INVESTING

Do not just save money, invest it. Investing lets us grow our money.

Parents out there must not depend on school on how to teach their children about handling money. You as a parent must teach them the basic, little by little, depending on their age. So that when they grow up, they will already know the value of money and they will not be hard up in managing their finances.