{"id":7419,"date":"2024-12-26T22:42:33","date_gmt":"2024-12-26T22:42:33","guid":{"rendered":"https:\/\/ekyaschools.com\/?p=7419"},"modified":"2026-08-19T15:48:34","modified_gmt":"2026-08-19T10:18:34","slug":"financial-literacy-from-an-early-age","status":"publish","type":"post","link":"https:\/\/ekyaschools.com\/blog\/financial-literacy-from-an-early-age\/","title":{"rendered":"Financial literacy from an early age"},"content":{"rendered":"\t\t
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It\u2019s Jan 2022, I am in grade 6 as a substitute teacher. I ask the students to introduce themselves. They also get curious to know about me. As soon as I tell them that I am a senior grade teacher and I teach Accounts and Business studies, they are intrigued. The word Business catches their attention and some of them express their interest in Finance.<\/span><\/p>

Now, I was fascinated to hear the word finance from such young children. Particularly fascinated by a young student Ms Ahaana Shetty, who explained how she manages her pocket money, as taught to her by her father. She had a clear understanding of creating a balance between saving and spending.<\/span><\/p>

This was not the case in the earlier times. We can quote examples of celebrities who, despite having earned a fortune, burnt their hands at poor financing decisions. Amitabh Bachan\u2019s ABCL took on more than it could handle, like the <\/span>Miss World<\/span><\/a> pageant, and exhausted all money. Then it took bank loans which it couldn\u2019t repay. Mr. Bachchan had retired, so there was no income and no savings.<\/span><\/p>

The moral of the story is, that even if people earn astronomical sums, they need to invest it so that it keeps growing.<\/span><\/p>

Having said that, it boils down to the fact that financial literacy at an early age is pivotal for building a strong foundation for financial well-being throughout life.<\/span><\/p>

Teaching children about money, budgeting, savings and investments from a young age will help them make informed financial decisions. They can avoid the financial perils faced commonly by people.<\/span><\/p>

The challenge in educating young children about finance would be the financial jargon which they may find overwhelming and difficult to understand. Hence it becomes important to use age-appropriate terminology.<\/span><\/p>

As parents, we can give a reasonable amount of allowance to our children and ask them to use it wisely for needs, and wants and also save a part of it. This will help them to understand the concept of budgeting. We must also encourage them to make informed purchasing decisions, look for discounts and become a smart shopper.<\/span><\/p>

A simple step like opening a savings bank account for the child and making them understand how a bank account works will introduce them to the importance of keeping money safe. They will understand how regular savings will grow over some time due to the compounding of interest.<\/span><\/p>

Children must be taught about loans too. They need to understand that loans should not be borrowed if one is not sure of financial ability to repay. Also, they need to be taught that loans must be repaid timely, or else they will keep becoming bigger due to accumulating interest.<\/span><\/p>

Older children can be introduced to the concepts of stocks and mutual funds. They can be encouraged to follow investments over time and learn about the dynamics of stock markets.<\/span><\/p>

Many top schools in Bangalore<\/a> are now recognizing the importance of financial literacy and are gradually incorporating such practical life skills into their curriculum.<\/p>

Schools can introduce financial literacy programs and take initiatives to incorporate financial education as part of the curriculum.<\/span><\/p>

I would like to conclude by saying that it is essential for everyone to be financially literate and wisely invest money to grow it. It is equally important to keep track of investments. One should not spend more than what one earns, even if the earnings are enormous, otherwise, the money will not last very long.<\/span><\/p>

Remember, it is your money.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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FAQs<\/h3>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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What is financial literacy? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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Financial literacy means learning how to use money wisely. It helps children understand saving, spending, and planning.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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Why should children learn about money early? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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When children learn about money early, they make better choices later. They understand the difference between needs and wants.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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How can parents teach children about budgeting? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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Parents can give small pocket money and help children plan how to use it. They can also use activities, like summer camps in Bangalore, to teach kids simple money lessons in a fun way.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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Why is saving money important? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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Saving money helps children understand how money can grow over time. It also teaches them to be careful with spending.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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What should children know about loans? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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Children should know that loans must be repaid on time. If not, the money to be paid back can become bigger because of interest.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

It\u2019s Jan 2022, I am in grade 6 as a substitute teacher. I ask the students to introduce themselves. They also get curious to know about me. As soon as I tell them that I am a senior grade teacher and I teach Accounts and Business studies, they are intrigued. The word Business catches their […]<\/p>\n","protected":false},"author":2,"featured_media":24552,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-7419","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/posts\/7419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/comments?post=7419"}],"version-history":[{"count":3,"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/posts\/7419\/revisions"}],"predecessor-version":[{"id":28438,"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/posts\/7419\/revisions\/28438"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/media\/24552"}],"wp:attachment":[{"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/media?parent=7419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/categories?post=7419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ekyaschools.com\/blog\/wp-json\/wp\/v2\/tags?post=7419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}