If the financial crisis has taught us anything it’s the need to plan ahead for your financial future as you never know what’s going to happen around the corner. In many countries – discussion about the economic crisis has made experts’ question whether the next generation should receive more education on financial planning.
And it’s not just grown ups that are pushing for financial education reform – youngsters in some parts of the world are now calling for schools to teach financial education as a subject.
The key problem for many young people is that they don’t know how to use and spend money in the right way. Meanwhile, they also find themselves bombarded with advertising that suggests the “buy now pay later” mentality and living with interest fees is the norm. This dangerous mindset could force future generations into a reckless cycle of financial debt with no easy way out. Though financial problems in early adulthood are very common, it is difficult for young people to find out how to manage a financial budget effectively. Even simple tasks such as budgeting or viewing a state pension forecast should be taught from an early age.
Aside from the school system – many parents are starting to take advantage of a wealth of online tools to teach their kids about sensible finance. There are a wide variety of online tools such as this pension calculator, which can be used to help kids plan for their financial future.
Sadly many adults are also lacking financial analysis capabilities. This can result un insecurity when it comes to financial terms and concepts. Starting from an early age, building a strong background, can very likely prevent such a situation so many parents are now starting to see the benefits of teaching their kids how to manage their money.
The idea has certainly taken off across the Atlantic with some companies even setting up finance lessons for pre school kids state side.
The National Financial Educators Council expands their current product line to provide financial literacy material for kids under five.
The new product line will launch April 2012 with the NFEC financial literacy for kids program providing a comprehensive resource for those seeking to teach children personal finance.
NFEC spokesman Cecile Abad said:
“Most parents never received a financial education when they were younger; consequently, they lack the confidence to teach their kids about money. The NFEC provides material to help parents open up important conversation with kids about money”
And it’s only a matter of time before similar set up launches this side of the pond. But for now it’s up to parents to use the tools available on the web to educate the financial minds of tomorrow.