Financial Education At Early Age Promotes Economic Stability

It is important to teach children the financial education, so they will grow up making better financial choices. According to one report, early financial education can help promote economic stability. Do you agree?

Financial Education At Early Age And Economic Stability

According to May Suiter, of St. Louis Post-Dispatch, it is essential that adults teach children the facts about economics and personal finance. It is important to inculcate this knowledge to them as early as possible because teaching them when they are in high school may be too late. According to a study led by David Whitebread and Sue Bingham of the University of Cambridge in England, children usually develop financial habits when they are 7.

Per the report, children's financial knowledge depends on their observations. In today's era where most are purchased online and children see their parents pay through credit cards and smartphones, children might develop a faulty impression and draw wrong conclusions about money.

Everyone should be knowledgeable about financial and economic education because these are essentials in the development of the society as a whole. When consumers are properly informed they will make better financial decisions that may promote economic stability.

Another study suggested that financially educated consumers make a better decision for their families and increase their economic security and well-being. Secure families are better able in contributing to the communities, improving the community development in the process. The study learned that there's a potential relationship between financial education and community involvement. In addition, financial education programs are making a difference in communities.

What To Do To Teach Children Financial Education

According to Courier-Journal, parents should read financial and economic books to their children. There are books that are appropriate to their ages, for example, "Little Critter: Just Saving My Money" and "Alexander, Who Used to Be Rich Last Sunday." The Federal Reserve Bank of St. Louis recently created Q&As for parents, so they can discuss the topic with their children more efficiently. You can check the resources here.

How do you teach your children financial education? Share your tips with other parents in the comment section below.