Financial Literacy Month – Importance of Financial Literacy for Youth
We talk about finance a lot in our day-to-day interactions, and we understand the importance of understanding basic finance concepts. But not everyone understands financial literacy and it’s an important part of our jobs to educate as much as possible. April is Financial Literacy Month and we’re outlining some important reasons for teaching our young people about financial literacy.
5 Benefits of Youth Learning About Financial Literacy:
- Teaches Lifetime Financial Independence. If children learn healthy finance habits at an early age, they are more likely to have a lifetime of healthy habits. Teach them to spend wisely and save often as soon as you can.
- Needs vs Wants. Learning to distinguish between needs and wants is crucial to financial success! Teaching our youth that “wants” will come after hard work is important, and establishing early habits of frugality can help mold youngsters into savings machines!
- Start Retirement Planning from the FIRST Paycheck! We say it every day here: it’s NEVER too early to start saving for retirement – and no truer words have ever been spoken. It’s surprisingly easy to save money and it can add up quickly, especially if you start at a young age.
- Teach the Importance of Opportunity Cost. Young people should understand that every financial decision has an opportunity cost – money is a limited resource. Understanding this will help them make smarter choices about money.
- Invest. Invest. Teaching youngsters that it’s NEVER too early to start investing can help them gain confidence from an early age. Learning how to invest can be intimidating but the benefit of time in investing early can make the returns oh so worth it!
Here is a fun quiz to understand more about financial literacy: https://www.finra.org/financial_literacy_quiz
One of our favorite things about being bankers is working with our youth. Let us know if you have questions or want to know more – we’re here to help! We strive to be more than a bank. We want to be your financial literacy partner!