Teach Kids Financial Literacy

Introduction

The need for financial literacy is rising worldwide as long term financial planning becomes an increasingly complex process where even many financial professionals find hard to grasp! With today children growing up relying on their parents' wallets and credit cards for things they want (and often not needed), these children have apparently lost touch with money.

A Change to 'Invisible Money'

I grew up watching my parents receiving their pay packets in a brown envelope at the end of each month. The money would go into various allocated budget and these would be under the control of my mother. She was responsible for dishing out money for daily necessities, groceries, as well as pocket monies for me and my siblings. She was able to make ends meet each month, with a bit of savings.

Today, these pay cheques have become invisible as they are credited into bank accounts with various inter-bank GIRO payments taking away part of the salaries. The advent of the credit cards has also a major impact on the spending habits of the younger generations, and credit cards have altered entire generations' perception of money.

Teaching of Financial Literacy

In Singapore, the Ministry of Education has attempted to incorporate financial literacy into school programs such as social studies, civics, moral education at primary and secondary level. This financial literacy apparently is insufficient and has not enough depth and impact to educate the younger generations of students, and financial literacy is absence in the junior colleges and universities, as students drilled deep into their respective spheres of interest such as engineering, business administration, economics, etc.

Thus, financial education may not address the deeper issues such as behavioural patterns of today society. The hope is that it at least creates an awareness of the basics of money management.

Article by  Alice Tan