IMPORTANCE OF FINANCIAL LITERACY FROM A YOUNG AGE
Alpana Kala
Principal, Sindhi High School,
KK Road, Bengaluru
Alpana Kala is the Principal of Sindhi High School, KK Road. A High School English teacher,
she has been a passionate educationist for the past two and a half decades. Her leadership mantra is -Lead with poise, dignity and compassion.
She is an eloquent orator, a good singer and a voracious reader. She writes poetry, some of which has been published on different online platforms. As the daughter of a paramilitary officer, Aplana has traversed the length and breadth of the country during her growing years. This has helped shape her into an accommodative, sensitive individual.
Financial literacy is the ability to use financial skills like budgeting, saving and investing to make smart money decisions. Financial literacy is the bedrock of wise financial management of our resources, planning judiciously for a better tomorrow while living comfortably in the present.
Financial literacy is often over-looked. We believe that children will learn to deal with money as they go through life. They are rarely spoken to about investments, assets, savings and liabilities of the family. Consequently, they remain oblivious to the family’s financial burdens. In our desire to protect our children from hardships, many-a-time, we paint a rosy picture of our financial status.
A few decades ago, families were thrifty and inculcated the same in their children. It was not frowned upon to share clothes or books with siblings. Most of us were taught to live within our means and if parents could not afford something, they would not shy away from saying the same to their children. Use and reuse was the mantra.
Unfortunately, with more disposable incomes and the ubiquitous credit cards, the concept of ‘enjoy now, pay later’ has become widespread. To accrue debts is a bad financial practice, but it has become prevalent today. Living beyond one’s means should be desisted from. Children learn from observing their elders. If they see us using money wisely, they shall do the same.
Financial literacy is being taught in schools at the middle school level as a skill subject. This is a very timely exercise in making youngsters financially literate. Catching them young is imperative, so that they learn basic bank dealings, saving before spending and using money responsibly.
The habit of saving is itself an education (TT Munger). It is rightly said that a penny saved is a penny earned. Saving is a trait that can be inculcated from a very young age. It does not matter how much you save, but save you must! Habits are formed from childhood: hence parents should ensure that their kids learn to save for a rainy day. Something basic and fun to teach them saving could be a piggy bank. Financial literacy is a life skill and should be taught to our youngsters for their better, brighter and more secure future.