Financial education is one of the most important pillars to guarantee a person's success and stability throughout life.
However, a lack of education about money and how to manage it from childhood can result in financial difficulties in the future.
In this blog post, we will explore the importance of teaching financial education to children and young people, how this type of learning can be integrated into schools and what are the effective tools and practices to prepare the new generation for a healthy and conscious financial life.
The importance of financial education from an early age
We live in an increasingly consumerist and dynamic world, where financial decisions directly influence personal and social well-being.
However, most schools still do not include financial education systematically in their curricula.
This deficiency can lead to future adults being unprepared to deal with issues such as personal budget, debt, investments and retirement.
By introducing financial education into schools, we are giving young people the opportunity to make informed and responsible decisions and creating more conscious behavior when it comes to using money.
This learning can prevent financial problems in the future, in addition to being essential for children and adolescents to become adults who are better prepared to manage their resources.
How to teach children and young people about money
Financial education should start from childhood, in a simple and gradual way.
Initially, the focus is on teaching children about the importance of money, how it is acquired and how it can be used responsibly.
As young people grow, it is possible to deepen the content, introducing more advanced concepts, such as investments, credit and budgeting.
1. Introduction to the concept of money
For young children, the first step is to teach them what money is and how it works.
This can be done in a fun way, with pretend games that simulate a store, where children need to use fake money to buy or sell products.
This activity helps you understand the basic concept of exchange, value and the need to use money responsibly.
2. The importance of saving
Teaching the importance of economics is a fundamental lesson.
Children must understand that, in addition to spending, it is necessary to save some of the money for the future.
This can be introduced in a practical way, such as a piggy bank, where the child deposits part of their allowance or gift money.
This habit can be reinforced over the years, with the introduction of concepts such as savings and financial goals.
3. Setting financial goals
As children get older, the concept of setting financial goals can be introduced.
Teaching the importance of planning and setting clear goals is a skill that will be essential throughout life.
For example, if a child wants to buy something that costs more than he or she has, the lesson is that he or she needs to plan how to save money to achieve that goal.
4. The concept of budget
One of the most important skills children should learn is how to budget.
This is a concept that can be introduced in adolescence, when young people begin to have more control over their money.
Teaching how to divide money evenly between different categories, such as needs, wants and savings, helps you understand personal financial management and make informed decisions about where to spend.
5. The power of credit and debit
Upon reaching adolescence, young people should be introduced to the concept of credit and debit.
The difference between the two, how a credit card works and the dangers of debt must be explained clearly and practically.
Schools can promote discussions about the use of credit cards, loans and interest, preparing young people to make informed financial decisions in the future.
6. Investments and financial future
As young people come of age, they should begin to learn about investing and how money can grow over time.
This includes the importance of saving for retirement, how the stock market works, and other financial instruments that can be useful in ensuring a stable financial life in the future.
Teaching about the different types of investments and the risks involved is essential to help young people understand the importance of diversifying their sources of income and ensuring a secure future.
How financial education can be implemented in schools
Although financial education is crucial, most schools still do not include it as part of the mandatory curriculum.
For this to change, teachers, managers and educational policy makers need to understand the importance of this area of knowledge and integrate the topic into schools.
1. Teacher training
One of the main barriers to implementing financial education in schools is the lack of teacher training.
Often, educators do not feel prepared to teach about money and finances.
Therefore, it is essential that schools provide training programs for teachers, ensuring that they can deliver content effectively and accessibly.
2. Partnerships with financial institutions
Partnerships between schools and financial institutions can be an excellent way to teach financial education in a practical way.
Banks and other institutions can offer educational programs, workshops and even digital tools that help children and young people learn about managing money.
Many of these institutions already have programs focused on financial education and can be a valuable resource for schools.
3. Use of technologies
Technologies can be great allies in teaching finance.
Budgeting apps, educational games, and online platforms focused on teaching personal finance are effective tools for teaching concepts in an interactive and engaging way.
Additionally, using videos and podcasts can be an interesting way to approach the topic in a more dynamic way.
4. Financial education must be transversal
Financial education should not be treated as an isolated subject, but rather as cross-cutting content, integrated with other subjects.
For example, when teaching mathematics, teachers can include questions about percentages, interest, and discounts.
In economics classes, the functioning of financial markets and the importance of financial planning can be addressed.
The positive impact of financial education in schools
Investing in financial education in schools can have a profound impact on the lives of young people. Some of the benefits include:
- Making informed financial decisions: By learning about money, young people can make more informed decisions about their consumption, savings and investments.
- Debt reduction: By understanding how credit and interest work, young people are better prepared to avoid debt and keep their finances in balance.
- Ability to achieve financial goals: Financial education teaches young people how to set financial goals and how to achieve them, whether it's to buy something they want or to secure a stable financial future.
Questions and answers about financial education in schools
1. What is the ideal age to start teaching financial education?
There is no exact age to start teaching about money, but it is recommended to start as soon as possible, with simple concepts.
From the age of 4 or 5, it is possible to teach the value of money and exchanges in a playful way. As children grow, the concepts can become more complex.
2. What are the main benefits of financial education in schools?
Key benefits include the ability to manage money responsibly, make better financial decisions, and avoid debt in the future.
Furthermore, it prepares young people to deal with investments and plan their financial future in a solid way.
3. How to teach young people about investments and interest?
To teach about investing and interest, start by explaining the basic concept of how money can grow over time.
Use simple examples, such as savings, and then introduce more advanced concepts such as investment funds and shares, according to the student's level of understanding.
Interesting facts about financial education
- Brazil is one of the countries with the least financial education in the world: According to research, only 181% of the Brazilian population has some type of financial education. This reflects the urgent need to integrate this knowledge into schools.
- The Effect of Financial Lessons on Adulthood: Studies show that adults who received financial education as children tend to be more responsible with their finances, save more, and have less debt.
- Financial education can prevent financial depression: A lack of knowledge about finances can lead to serious emotional problems, such as anxiety and depression. Teaching about money can help prevent this type of situation.
In short, financial education in schools is a powerful tool to ensure that future generations become adults who are responsible with their finances.
Teaching young people about budgeting, saving, investing and credit from an early age prepares them for a more balanced and prosperous life.
So it’s time to rethink how we approach this topic in schools and ensure that everyone has access to the knowledge they need to make healthy financial decisions.
