Why Do Children Need Financial Literacy?

The world we live in revolves around money, whether we acknowledge it or not. Until few decades ago, we had joint family system. Life was entirely different. Choices were fewer and simpler. Elders guided the household. Someone in the house always knew how to manage money, solve problems, or step in when things went wrong. Value of money felt by the children.

In this globalised world everything changed. Nuclear families are norms. Social status and display of wealth felt like success in the life.

Children today see UPI payments, online shopping, and instant deliveries everywhere. Money often looks invisible. It silently through apps, cards, instant loans.

Children are pampered, neither exposed to hardships nor sensitized to the value of money. And always protected from real-life financial decisions.

• They decide the cars but not knowing loan and hardship in repayments.
• They know how to tap and pay, but not why money must be planned or saved.
• Children see spending, but not the thinking behind it.

Parents are busy and they themselves are confused with the complex and endless choices in every financial aspect.

Schools focus strongly on marks and exams, but life skills are rarely taught in a clear, structured way.

• Children learn maths but not budgeting.
• They learn history, but not how money (Labour) works.
• They Learn chemistry & reaction but not the impact of financial decisions.

Financial literacy helps children understand how money works in real life. Kids recognize that money is nothing but stored value of labour. Either you spent from past stored labour (Savings) or give your labour now (Earn) or repay through future labour (Loan).

Financial literacy is not about pushing children into adulthood (economic Adulthood) early but laying the strong foundation by making them understand the connection between work, income, spending, investment & protection.