Why teaching children financial literacy is important

FINANCIAL education to school children is a foundation for inculcating financial values and the savings culture. When Rwandan children are exposed to these values, they grow up to become advocates of the savings culture which is still very poor in the country.The ongoing financial literacy campaign in schools by the Association of Microfinance Institutions in Rwanda (AMIR) could not have come at a better time. The culture of savings is not yet developed in Rwanda and we need such campaigns to improve it. Providing financial education to young people means that in the future the country will have a generation of citizens with great entrepreneurial minds and strong financial discipline. The children will acquire knowledge and skills about small enterprise creation and savings. Even better is the fact that schools will form savings clubs through which financial education will be offered. This is a unique innovation that will make financial education more interesting and thus attracting more children. Teaching kids financial literacy is not too difficult. It does, however, require action on the part of adults.One reason why so many people fail with their finances is because they simply do not know how to handle their money. This could be attributed to not having proper financial education early in life. Financial literacy is an area that is greatly lacking in the current formal education system. Getting a child educated in financial literacy will ensure that they have a better understanding of how money works at a young age, and will enable that child to make better decisions when they group up. Basic fundamentals in money management such as budgeting, investing, and savings can make a world of difference for the country.

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Why teaching children financial literacy is important