Personal Finance Education
In today’s world, financial prudence has become an imperative life skill. It has become mandatory to understand how money works in the world. Personal finance education should become an integral part of educational curriculum. With the help of it an individual will acquire a skill set and knowledge to perform all his financial obligations in an effective manner. For a country to be financially successful it is important that its citizens are financially literate. Some of the leading countries of the world like Australia, United States, Canada, Japan, and the UK have already taken steps to introduce programs which raise interest in personal financial education.
The governments of various countries should understand that children and youth will benefit from personal finance education. A good financial curriculum will help in applying the gained knowledge, skills, and financial behaviour to achieve good financial habits. Financial literacy can become a reality if certain changes are introduced in the existing curriculum of the schools and universities.
An effective personal finance education can be imparted by adopting certain measures like:
• Introduction of basic financial concepts at kindergarten level. Small children can be taught the importance of having a piggy bank. This will inculcate a practice of having savings from a very young age. A fully dedicated course in personal finance education can be introduced at the graduation level.
• Providing practical opportunities related to money maanagement. The teachers should be trained adequately for this purpose. The schools and colleges can conduct workshops, online learning programs, and seminars to enhance the quality of the teachers.
• Various programs should be undertaken that support and acknowledge schools that are adopting and implementing personal finance education.
• Teachers should be encouraged to run their own personal finance classes by giving them incentives and proper training. Digital data and resources should be made readily available to them.
• The parents should also be given classes in personal finance management. Special workshops can be conducted for them where they can learn how to interact with their kids while teaching them money management. Parents should be encouraged to discuss money related topics and issues at home.
Nowadays, several financial institutions are providing workshop kits, tools, and resources to facilitate financial education among the people. These kits help by providing focus and specialization to the user by making him more financially prudent. People should take the initiative to become financially savvy so that they can guide their children for a better financial tomorrow.
Personal finance education will definitely have immense impact on the masses. It will enhance their ability to have sound financial future. It will also curb their tendency to get entrapped in the vicious circle of debt and debt repayment. Absence of financial understanding has been considered as one of the major reasons responsible for financial problems faced by the majority of people. The recent global financial trends are strongly indicating that the consumers should at least have a basic knowledge of personal finance management. Therefore, people should be empowered to make sound financial decisions by providing them an access to financial workshops, resources, and tools.