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Financial literacy among children

Financial literacy is the ability to make informed, intelligent decisions directing one’s money, time, and other resources. It includes understanding the importance of budgeting, getting out of debt, and saving for retirement, among other financial-related issues.

There is no doubt that financial literacy is a skill needed by many individuals to help them successfully navigate the often complex, confusing, and often-unsatisfactory world of finance. When it comes to teaching children about money, people may question what age is appropriate to start teaching children or how much information should be shared with them.

Many people often think that children are too young to learn about money. They should also be taught about where, when, and how to access information on financial issues or decisions. This will help them learn from their mistakes and better understand the financial world they will face once they obtain their own money.

Children need to be taught financial literacy appropriately and at the right time. Parents must decide early on if they will lecture their children on money matters or give them an allowance so they can practice managing their money as soon as possible. Some parents like to combine both approaches when teaching children about money.

The primary financial knowledge that a child should be exposed to includes developing an understanding of the processes involved in the distribution of finances. It is essential for children to know about the basics of money distribution, such as the types, values, and uses of money, including savings, investments, and budgeting.

 

Benefits of financial literacy among children

There are so many benefits of impacting a child with this knowledge. A few of them include;

* Understanding the importance of budgeting, getting out of debt, and saving for retirement, among other financial-related issues.

* The ability to make informed, smart decisions directing their money and resources.

* They need this particular skill to navigate the often complex world of finance successfully.

* To know about risks associated with finances.

* Basic financial knowledge is the development of an understanding of the processes involved in distributing finances, including types, values, uses

Children should know the basics of money to be familiar with everything and learn how to handle financial matters as they grow.