Reasons a Child Should be Financially Literate
According to Investopedia, “Financial literacy is the ability to use knowledge and skills to make effective and informed money management decisions.” This helps one to avoid debt as well as comprehend financial transactions and how money works to make informed financial decisions. A child who learns how to manage finances early becomes equipped to live independently.
Also, financially literate people grow into accountable people in the future who utilize money wisely. Financial literacy helps individuals to save enough money to adequately sustain them and avoid high levels of debt that may lead to bankruptcy.
Notably, people who are financially literate end up having double the wealth of those who have no plan. Hence, it is important to educate children about the value of money and how to utilize their money properly. This can happen by letting them know that they can save and use their money to earn more income.
Children should be involved in group discussions that involve topics like, “Ways of better utilization of resources” among other financial topics. Teaching children financial literacy when they are young helps them grow into adults who can achieve financial success.