When Should We Begin Teaching Our Children About Finance

When Should We Begin Teaching Our Children About Finance




As our children grow older and begin to take more of an interest in what is going on around them, when should we begin teaching them about personal finance? This is a question which crops up time and time again, with many differing views.

This age old argue has cropped up again with a number of market observers believing that basic financial education in schools is a must, to ensure that upon leaving education the young adults of tomorrow are fully aware of what is on offer. Car loans, mortgages, personal loans and over drafts are many of the aspects of financial sets which will hit teenagers when moving into the work place. It would seem sensible to teach them financial restriction, the risks and also the benefits of financial planning.

As the rise in bankruptcies and Individual Voluntary Arrangements continues to rise, it seems that the younger of society are entering the work place with little information and appreciation of the risks. The rise in financial hardship among younger people is on the rise, and needs to be addressed as soon as possible. Credit cards, over drafts and personal loans are regularly being presented to all areas of society, with no appreciation of their individual financial situation. There is not a day goes by when we are not bombarded with some form of financial offer, and the recent decision by the main UK Post Office to increase the maximum quota of “junk mail” per household is further encouragement to the cold calling, mailshot sets of the financial industry.

As we approach the festive period, Christmas is a time when people feel pushed into taking on further debt to finance what is becoming an ever more expensive time of the year. Many areas of society seem to have the high risk attitude of borrow now, pay later, already though they are not sure how they will find the repayments. This reckless attitude is being copied by many younger adults who do not fully appreciate the long term aspects of financial planning.

Perhaps now is the time to introduce the subject of financial planing into schools, and subtly make our children aware of the need for restriction. It may already be that as we educate the younger of society that they will in turn influence their parents, which would be most advantageous for all concerned. Controlled finance is a major part of the economy and everyday life, however the effects of reckless borrowing are there for all to see.




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