Should Children Know More about Finances?

The world we are living in is a chaotic place. Several studies showed that even adults are not well-educated when it comes to financial literacy. Some people could not even say what compound interest means. This is something truly terrifying since our lives more and more depend on proper money management. Finances is not an easy topic and we all need to be informed about potential pitfalls of our financial decisions.

Our children will inherit an economy that is based on debt, useless fiat money, strange forms of new currencies (looking at you, BTC), and various forms of financial products that we do not fully understand ourselves. This means that the next generation will be exposed to an enormous amount of information and vastly more complicated financial problems. Do we need to focus on educating children and preparing them for troubles of adulthood?

While most teenagers take additional classes to learn more about managing personal finances, credits, and debt, younger children do not have any form of financial education. This means that our kids do not know the true value of money and often feel devastated when the burden of managing finances starts piling on their shoulders.

New Developments

Thankfully, there are several organizations that decided to teach younger children about finances. Most lessons are very simple and have various forms of gamification in order to make topics more comprehensive and understandable. Children can learn about credit, compound interest, and many other important aspects of managing finances.

Here are some organizations:

  • Brain Arts Productions. This small company operates in Chicago. This is a form of free theater where children are encouraged to participate in various plays and lessons. The organization evolved into an educational center where children can learn more about the dangers of contemporary economy through creative arts and interesting games. Children learn not only about basics that they will need. They receive knowledge about business, banks, taxes, and much more.
  • My Classroom Economy. This is yet another educational facility that focuses on teaching children about proper money management. The educational system was evaluated by several academic representatives and most specialists consider this program effective and worth of time investments. The idea is to create a classroom where everything is tied to a fictional currency that is used to participate in educational activities.
  • EverFi. This is a small business that managed to kickstart itself about 10 years ago. The company is focused on creating digital content that is simple enough for children to understand. There are lots of interesting lessons that even adults will find quite interesting and informative. The main topic is financial literacy.

These companies truly deserve attention from the society. We need to create more ways for our children to learn about the economy and how it works. It is a sad thing, but we are moving towards a very unstable future. The financial crisis is still going on strong. Most western economies start succumbing to its long-term effects. More and more people become debtors. Regardless of how we handle this situation on a global scale, our children will have a lot to deal with.

It should be our top priority to ensure that our children have necessary knowledge and skills to overcome financial difficulties that inescapably will meet them in their adulthood. Investing more money into educational programs, creating interesting additional classes for high school students, and allowing more enthusiasts educate our youth — these seem to be adequate answers to an imminent problem.