Concordia University sites on its website three good reasons for teaching financial literacy. These are to help students avoid credit card debt, understand their college loans, and understand the benefits of cumulative savings—all valid points!
Imagine, however, if these college students had already been trained in sound financial judgment. Study after study (several of which have been referred to on the CUNFL blog) suggests that young adults and teenagers have little understanding of the value of money. Let’s leave to the sociologists the discovery of the reasons behind this cultural shift and focus on swinging the pendulum back in the direction of nurturing fiscal responsibility at a young age.
Doing so will garner at a young age these benefits: an appreciation and respect for money; self-discipline; and work ethic.
Involving early learners in the management of their own money naturally forces them to distinguish between wants and needs. The process makes children (and anyone) more aware of value, inspiring appreciation. Also, being forced to decide between wants and needs, or even between wants and wants, stimulates self-discipline and work ethic.
Children who learn at a young age that hard work leads to achievement will become resourceful adults.