Financial literacy is very important for kids; however, it needs to be covered more in school. Kids will learn basic math throughout school, but they need to learn about practical things such as the importance of money throughout their education. Financial literacy is essential for younger kids because it gives them experience and knowledge so they can navigate their finances. Below we will overview four reasons why financial literacy is vital for kids to learn.
It Teaches The Value Of Money
Through financial literacy, children will learn the value of money and how to make intelligent decisions. Financial literacy is critical because it showcases that kids need to work for their money if they want it, and it will not just be given to them. It also showcases that if you want the money, you will have to work for it. It will also showcase the value of saving money to financial security as they age. This will teach them not to waste their money, and they will refrain from purchasing things they may want but not need.
It Will Help Them Spot A Scam
In the world today, thousands of variations of scams are run daily. Scamming is such a massive problem because, in 2020 alone, there were over 40,000 victims of fraud within Canada. With kids being online so often, as 95% of kids 3 -18 have access to the internet, it makes them more vulnerable to these online scams. Financial literacy programs showcase how to determine if messages or websites are scams and how to avoid them. It will also teach them the importance of protecting their passwords and ensuring their online banking accounts are as safe as possible so they will not be vulnerable to scams. On top of learning about scams, kids are also taught that when making purchases, it is good to ask questions. It showcases the importance of asking questions to ensure that the products you purchase are worth the monetary value they are set at. Financial literacy is essential in assisting children to become smarter financially, including learning how to avoid scams.
It Teaches Kids How To Invest Smartly
Financial literacy not only teaches kids how to save money, but it also teaches them that money can work for them to make more money. Financial literacy programs help kids understand the power of investing and make their money grow through investments. It teaches them about the variety of assets they can choose from, including low and high-risk investment choices. It also exposes them to the world of the stock market, giving them the possibility to pursue stocks in the future. Financial literacy exposes kids to brilliant investment opportunities they can seek to be more financially sound.
Prepares Them For The Future
Getting a head start on money management skills will set your kid up for success in the future. Financial literacy helps them learn the basics such as credit cards, paying off debts, and more, and having that knowledge will help set them up for their future. They will understand that having a good credit score is beneficial for being able to rent their own place when they are older and pay for their own cell phone plan. These financial skills and knowledge will allow them to live independently with lower anxiety toward finances as they understand the importance of saving money.
Future Millionaires Club
At Strong Play, teaching financial literacy to children is very important. We have an incredible program called the future millionaires club, where we teach financial literacy to children aged 8-12. This program teaches students the fundamentals of money, how to be a future millionaire, and entrepreneurship. Suppose you want to learn more about our incredible program, head to https://strongplay.ca/leadership-programs/.