Many Americans are feeling the financial noose tighten now that they are locked at home, living off their savings and unemployment. The ones that are lucky enough to work are only working minimal hours. Whatever the situation is, this whole COVID situation brought light to the importance of financial literacy. And, it’s not like there hasn’t been plenty of financial technologies introduced to make tracking and maintaining finances easier because this isn’t the case at all. Despite the increasing technology in the financial industry, more and more people are still struggling. These are just some of the reasons that financial literacy is so important from an early age. Below, you’ll learn some more reasons as to why you want to start educating your kids about finances as soon as possible.
Savings
Speaking of savings, this is something that is accrued over a long period of time. Even for the financial sound of wealthy, it takes time to develop a nest egg that can be stowed away for nothing but saving. The earlier you start, the better off you’ll be. Who do you think is going to start first? The educated or the uneducated?
Investing
Investing is just as important as saving. In fact, some might say that without investing there would be little to no opportunities for saving. This is especially true if you don’t have any other ways to supplement your income. Whatever the situation is, smart investment could put more money in your pocket. And, smart investing is not something that’ll just come to you. Sure, anyone can make a few lucky investments, but if you want to be a sound, solid investor with a good head on his or her shoulders, you’ll need to start learning the ropes of investing early on. Financial literacy will encourage smart investing.
Learning To Budget
Above all else, anyone from Budgetable will tell you that budgeting is the most important part of finances. If you don’t know how much you are making, how do you know how much you can spend? If you don’t know if you are overspending or not, how do you go about saving money? You couldn’t do either of these things without proper budgeting. Learning to budget your money properly at an early age will give you the biggest leg up of all.
The Importance Of Loans
Most people don’t truly understand the ramifications of loans. With the increasing cost of college these days, many high school seniors are taking out loans for college to cover the cost of tuition. This only makes sense because its the only way they can afford to attend college. However, too few of them are really aware of just how these loans are going to affect them in the future. Many don’t know that there are several loaning options available. Simply put, regardless of the education or roles after college, many students end up paying back student loans for the rest of their lives. This is even true for higher payer occupations. This is probably, even more, so true for these types of occupations.
Encourages Giving
Last but not least, giving is an extremely important part of life. Giving back, being grateful for the opportunities you had where others might not have had. When you teach young individuals the value of money, how to spend wisely, it really just sets up more opportunities for the younger to give back.
