Children are innocent and can easily be moulded in the way one wants, which is a very important thing that needs to be understood these days. A very commonly heard word these days is financial literacy which means to have a good understanding of money and where one should properly use it. The key areas that one should pay attention to are budgeting, investing, credit management, personal financial management, etc. People usually have this perception that once a person faces the world and becomes financially stable then that’s the right time to know financial literacy but that’s a wrong perception because a child can be well trained from his or her very youth regarding the value of money. Whether it comes to managing as small chores as managing their pocket money and cutting down their day-to-day unnecessary expenses.
- As the world has now become digital so often youngsters scroll and see things online and then show tantrums to buy them but if one has a clear knowledge of money and its hard-earned value then it can easily help children think in the right direction and use the money wisely.
- If children have better financial knowledge then it will help in building a beautiful future for the country as the youngsters will know the clear demarcation between needs and wants and will carefully spend money only on those things that are required.
- Financial management, if taught from the very start prepares youngsters to face the world from a very small age and this is the work done by the parents and teachers as skills can be easily inculcated within children if they are imbibed within them from the very start. This will eventually help them not face any severe financial crises when they are adults just because they got financially literate very late in their life.
- Encouraging children to maintain a piggy bank or issuing a prepaid card with a limit will help them in maintaining their expenses just from the very start. Also encouraging them to start earning early not because there is some need for the family bug to make them realise the need for financial independence and to manage the cost properly.
- Being literate in this particular field helps people to feel empowered and just not be dependent for everything on others but rather have a sense of self-worth and self-belongingness. Also not being aware of this matter makes them indulge in wrong habits like gambling, illegal betting, etc. and eventually destroys their life and makes them suffer in their life.
- Also being financially literate from a very early age helps children to tackle any sudden problem that may arrive at them and they don’t have to rely on others for assistance but rather can make sound decisions themselves.
Sovereign Gold Bond – Best Tax-Free Gold Investment option by RBI with 2.5% interest; SGB vs Digital Gold vs Physical Gold
Therefore being financially independent is a very crucial necessity in today’s era because of the above-mentioned reasons.
