Money has always been an aspect that’s ingrained in our everyday life. It’s a silently, loud, hovering presence that influences different facets of our life. It can indicate freedom, success, happiness, and independence and vice versa depending on how and where you use it. Recently, I stumbled upon an article that talks about a not-for-profit financial institution being awarded a Financial Literacy Award due to their commendable efforts in enhancing the level of financial literacy in their community. Financial literacy, despite its importance, has been a grossly underwhelmed concept. That’s why it’s good to know there are schools and education bodies that are putting an effort in involving finance-related coursework to elementary and high school education systems.
Financial literacy is the possession of invaluable skill sets that allows people to effectively manage their money and finances. With the way that money is involved in almost everything, being financially literate might just be the one thing between you and a successful future. In the United States, 48% of adults do not budget regularly for their day to day finances, and 17% have difficulty getting by in times of financial emergencies. Also, 3 out of 4 workers do not have a savings plan for their retirement and more than half of the American adult population literally do not have a budget or savings. Without knowing how to effectively manage your finances, you’re leaving yourself vulnerable to a future of financial instability.
These financial literacy statistics paint a grim picture for the future of American households. More than ever, the need for raised awareness and integrated financial literacy education in schools across the nation is greater. According to KeyBank, more than 76% of college students wish that they had been given Credit Counseling and more time to prepare for their financial futures. Without proper guidance regarding financial management, most of today’s youth are headed towards a bleak future of financial difficulties and mismanagements.
Despite there being a movement to include financial coursework in schools, financial management lessons are still not fully ingrained in our education systems, that’s why as a parent or an adult, you are the primary educator in teaching the young ones important life-long lessons regarding the value of financial management. Teaching them the basics of budgeting, credits, debts, savings, investing, and even long-term planning will go a long way in paving their path to success, as proven by the United States Department of Treasury. According to them, people who are given Credit Counselling or personal finance education are those who have higher net worth and savings as well as bigger retirement account contributions. When it comes to educating your child, you don’t have to be an expert as long as you give them hard-earned financial lessons.
By actively participating and supporting organizations that raise awareness regarding financial management such as Credit Advisors Council, you are giving yourself, your child, your family, and the people in your community a chance to gain proper knowledge to make sound and informed decisions about their finances.