Financial Literacy is Important

Who’s Teaching Our Kids About Money?

confusedChildMost kids don’t know anything about money management when they graduate from high school. Teaching children about money and financial education is essential, but who is teaching them this information?

Are they getting it from the school system? The school system teaches very little about personal finance.

Are they getting it from television? It’s not there either.

Are they getting it from the church? Very few churches offer any sort of curriculum for family finances.

Are they getting it from the community? I have not seen the local community centers offering very many courses on family finances.

So where is the education going to come from? Don’t get frightened, but the responsibility falls on you, the parents. Most families are ill equipped to teach their children about finances because they have not had much financial education themselves. They feel like they are the blind leading the blind.

So if good financial education for children is not coming from the school, church, or community, and the responsibility is falling to the families, what are we supposed to teach our kids? How can we prepare them to be great money managers and find financial success?

The Value of a Good Education

engIn our generation we put great value on education. I suppose we put a greater emphasis than any society ever has before. Perhaps this is because there seems to be so much more to learn as technology develops and as information becomes more readily available through television and the Internet.

Today it is normal for young people to graduate from high school, go to university, college, technical school, or follow an apprenticeship program. This has not always been the historical norm for education.

The average student will put in about 1,000 hours a year at school—that’s 12,000 hours of academic education by the time they graduate from high school. If they choose to also attend four years of university or college the total is closer to 16,000 hours. I think it is safe to say our society is doing a great job of educating our young people to prepare them for their job or career.

Now with the heightened interest in academic education in the past decades it would seem plausible that financial education would have grown equally as well. After all, we all have to deal with money every day.

Now let me ask you a question: How many hours of financial education have you received? If you are not an accountant or bookkeeper, it is probably safe to say you have received very little to no financial training.

Now let me ask you this: The last time you went to a bank for a mortgage or a loan did they ask you for your academic report card to see if you qualify for a loan? Of course not, they asked you for your financial report card.

My what? Your Financial Report Card—your Balance Sheet. Don’t worry if you do not understand this yet because most of us have never been taught about finances.

Dictionary_IconDictionary Definition of Education

The dictionary defines education as the act or process of imparting or acquiring general knowledge, developing the powers of reasoning and judgment, and generally of preparing oneself or others intellectually for mature life.

I think when it comes to academic education our society is doing a pretty good job of accomplishing good education. The three key phrases in that definition are gaining knowledge, developing skills, and preparing for mature life.

Other Types of Education

When we use the word education most of us picture a school or a university. It is where we go to learn information and skills.

What other types of education are there besides academic education?

Health-care-shield-iconHealth Education. This was an area really lacking in our society and most of the world but great efforts are being made by many companies and organizations to move this ahead. I think many people are much more informed in North America on health and health-related topics than ever before. This does not mean we are a healthier society, however, but most people have increased knowledge in this area.

 

steeringwheelDriver’s Education. We have special classes and training for people to teach them how to drive a vehicle. There is the in-class training for many hours and then finally the in-car training. Most of us require our children to take these courses before they can drive our vehicles. Isn’t it interesting how all areas of education have moved away from the families responsibility to societies responsibility in the past few decades.

 

11240282452055483059Financial Education. Where do we go to get financial education? It seems that much of it has been left to entrepreneurs and other organizations that we have to seek out—usually after a crisis or a financial difficulty. If we had proper financial education in our country I’m sure it would be safe to say that there would be fewer bankruptcies and foreclosures, and fewer people living paycheck to paycheck.


So where does one start?

CASH-KIDZ-LOGO---COLOR

learnmoreRight here. By following this easy step-by-step system, the Cash Kidz program will guide you, the head of your family, in helping your children get on track now with their financial education instead of figuring it out from the school of hard knocks like most of us did – and unfortunately with a failing grade.

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