- By Vaamanaa Sethi
- Fri, 08 Sep 2023 06:43 PM (IST)
- Source:JND
Financial literacy has become an important skill set, which is important for everyone, including youths in their 20s and 30s. In the constantly changing world of finance, providing youngsters with financial knowledge is seen as a valuable investment in their future.
Equipping youngsters with an understanding of savings and its advantages is crucial for a secure financial path, enabling them to make informed decisions regarding their education, career, and profession.
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On this International Literacy Day, it is important to recognise the fundamental significance of providing young children with early financial education. This not only fosters their development into responsible and well-informed citizens but also emphasizes the enduring advantages of imparting financial literacy from a young age.
Providing fundamental money management skills to young minds in their early years establishes the groundwork for a thriving financial future, promoting self-reliance, stability, and adaptability.
"Financial literacy is a foundational life skill. Especially in the age of social media where reality can seem very warped and unbridled consumerism can seem like the fastest way to earn social capital. Never mind the consequences that come after, off camera. Financial literacy is not just about inculcating healthy habits around saving and investing for future financial freedom – although that's a big part of it. It's also about building a healthy, balanced viewpoint and attitude about money," Ravi Bhushan, Founder and CEO at BrightCHAMPS, told Jagran English.
"And it is about understanding money holistically, within multiple global contexts. I believe that financial literacy is almost a human right for children, if the aim is to help them build strong, successful, and secure financial futures,” he added.
Starting with a grasp of fundamental banking concepts and progressing to preparing for investments in mutual funds, a strong financial education equips individuals to make informed decisions in the midst of a wide array of financial products and services.
Nita Menezes, coto Community Creator, Financial Coach, Founder & CEO of Financially Smart & MoneyPrastha, said "As we celebrate International Literacy Day in 2023, I am reminded of the immense importance of financial literacy, particularly among the youth of today. Financial literacy is, in essence, financial self-defense. We must foster smart money conversations not only within our homes and dinner tables but also within our educational institutions. It is our collective responsibility to ensure that the next generation cultivates healthy and wealthy financial habits from an early age. Let us empower our youth to secure their financial well-being and lead lives of abundance, free from financial stress."
Parents not only make sure their children become well equipped with financials but also help in gaining access to suitable financial tools for a secure and prosperous future.
"As a mother of an 11-year-old, I recognize the significance of imparting essential life skills to my daughter, and one of the most crucial skills is financial literacy. Teaching her about managing money at a young age is a valuable gift. It equips her with the knowledge and skills to navigate the financial world as she grows, fostering responsibility and independence," Munmun Sharma, Coto Community Creator of Sakhi 4Finance, said.
"Furthermore, it guards against the pitfalls of debt and financial stress, promoting mental well-being. By instilling these skills early, I'm providing her with a strong foundation for financial success and ensuring she's well-prepared for the financial challenges and opportunities life will undoubtedly present. And I would recommend others to do so," she added.
Charu Chellani, an active investor in the share market working as a Consultant at Moe's Art said, "For many of us, the concept of savings, investments, and budgeting comes later in life, often through trial and error. Earlier, involve into the savings, and investments was not considered as our own task, but definitely a responsibility of parents for their kids to be done. But after moving to the new city for education, and later job, it was cleared in head that it is so important to have the basic understanding of the financial concepts, and how they can positively impact a person's life trajectory".
"Not only this, it also helps in budgeting and let you know learn how to allocate income towards essential expenses and savings. Schools should include Financial literacy as a subject in their curriculums to impart finanical lietracy skills among kids at a young age and set a path for them towards a more secure, prosperous future. Like it's truly said, it's never too late to learn, it's just the right time to start," she added.
