Why Financial Education Is Important For Children And Young Adults

Van P

8 years ago

A young adult gained admission into college to study business administration&period; Having cleared off all academic expenses, the father of the young man gave him ten thousand U&period;S dollars for the first semester&period; In less than two weeks, the young man squandered the money&period; Well, there is one thing only to infer, he wasn’t financially enlightened by the parents&period; Excessive consumerism in youth is attributed to the failure of parents to <a href="https&colon;//twitter&period;com/Jonathanbagwel&lowbar;">educate their children</a> on how to manage cash&period;&NewLine;By and large, there is this big misconception that introducing a child to financing before they cross the teen age is a way to spoil the child or make the child become too money minded&period; But it is just the opposite&period; The truth is that breaking a child into financing before they come off age enough to manage big investments and money is the only way to teach a child to be prudent with handling finances&period;&NewLine;<h3 style="text-align&colon; justify&semi;">What is child financial education</h3>&NewLine;The term refers to the effort of parents to familiarize their children with the concepts of cash and investment management&period; According to Jonathan Bagwell, educating a child as to what money is and how it can be managed efficiently is pretty much like preparing a child for the big financial responsibility of the future that awaits the child&period; &NewLine;Most parents does that by setting up an independent account for their children&period; They do the funding from another connected to the children account&period; The parents would give their children full access to it&period; The children would be allowed to manage the account in form of settling certain bills and making payments for stationeries&period; The account get reimbursed on a timely basis say a week or month&period; The parents monitor the account and provide support to their children as to how they can manage the money in the account effectively&period; &NewLine;The children are also broken into the culture of saving more than spending&period; They are trained to understand that the less they spend, the more resources available&period; For that they don’t run short of finances&period; For the process to yield the desired result, some parent put less than a child needs in an account and expect the child to manage it to cover their expenses&period; &NewLine;