Finance, Money, Savings, Investments are some of the most dreaded or let’s say boring topics for adults! This has got to do something with the fact that we were never introduced to Finance in a fun way! Managing Money always hit us as a harsh reality of life when we started earning. We often wonder, ‘wish someone had taught me about it’!
We feel our next generations shouldn’t go through the same when it comes to money matters. Hence, we are here to bust various Myths you may have about early childhood Financial Education.
MYTH # 1: Finance is only for Commerce Students
BUSTED: All of us go through difficulties of graduating and becoming experts in our chosen fields. This is not just for acquiring the skill but also to lead a fulfilling satisfying life! Earning good money is not enough, It is equally important to know how to put it to good use! Commerce is a education stream however Financial Education is a life skill! No matter which profession you choose, Learning to manage your money will help you go further!
MYTH # 2: Not required at an early age
BUSTED: Much like Social skills, Personality Development, Survival skills are taught from an early age. Good Money Practices need to be introduced from an early age. Only then will it germinate into sound Financial Acumen. Kids start interacting with money at a very early age and now in various different forms. It is all the more important to make them aware about the tools and processes.
MYTH # 3: Finance Means Investing and Taxes only
BUSTED: This is one of the most common myth about Financial Education. Yes, trading, investing, wealth creation and taxation are a part of Finance but that is not all. So What exactly is Financial Education? It covers a wide aspect of topics starting from Savings, Budgeting, Household Finance, Operating a Bank account, Understanding Trade & Commerce, Covering your Risks as well as not falling prey to fraud and Ponzi schemes. Not everyone grows up to be an investor or trader but everyone of us needs to interact with basic financial products day-in and day-out!
MYTH # 4: Won’t be useful in Science and Technology
BUSTED: We often hear parents tell us, ‘My Son is interested in robotics, why should he learn about Finance?’. Robotics is a very interesting stream of science but it is not a life skill. Understanding Need vs Wants, Debit vs Credit, Simple vs Compound interest is required for Science Students as well.
MYTH # 5: He / She will acquire the skill later!
BUSTED: Thats a very common sentiment with parents. Why is it required now? He can always learn about it later. Well, later is too late! By the time students graduate and start earning, their focus in on doing well in their jobs. Most of us end up spending all of our early years earning to get gifts, expensive gadgets and unwarranted expenses. By the time reality hits us that we were supposed to save for that new car or house we had dreamt of, it is too late! Less than 19% of adults in India have some kind of saving by the time they turn 30. Why wait for so long to learn about managing money the hard way?
MYTH # 6: It’s Good, but it’s not for me
BUSTED: We have seen many international organizations, experts, academicians talk about need for Financial Education. We even make it a point to debate about it. But it comes to adopting Financial Education, we think does it really apply to me? I am well off as compared to others. I am better than him or her etc. Let’s just say it: It is the need of the hour! It doesn’t matter which strata of the society you are from, no matter where you work or which school your kids go to. Financial Education is equally important for each and every child! Even Yours!
MYTH # 7: There are no Tangible Benefits
BUSTED: Learning good money practices has it’s own benefits. Here is an example: A child gets money from various sources and events (birthday, Diwali, prizes, Gifts from elders etc) What do they do with it? Spend on something they like or keep in a piggy bank. Either ways, it is not being put to good use. What if the child has his/her own bank account where they can learn to deposit and manage their money. Grow their savings and meet small goals like a new bicycle, a school field trip or a new cricket bat. The feeling of personal accomplishment and knowing that they saved to get this will be a huge learning!
Also, When your Child Participates in programs like the NATIONAL FINANCE OLYMPIAD, they not only learn about money but also stand a chance to Win Cash Prizes! How’s that for tangible benefits? Learn more at: www.financefundas.in
Is there any myth that you have come across? Let us know your views!
Share these MythBusters with your friends and family too.