Financial Literacy Education

Financial Literacy Education
The increasing acknowledgement of the significance of imparting young individuals
with the necessary knowledge and abilities to effectively manage their finances has instilled
within me a strong drive to investigate the instructional approaches employed by secondary
school educators in the United Kingdom for teaching financial literacy (Urban et al., 2020).
People who need to learn more about money might make bad choices about saving, investing,
and buying. They might need help making a budget, getting into debt, or not planning for
situations or long-term goals, leading to unstable finances and making it harder for them to
become financially stable (Faulkner, 2022). The acquisition of financial literacy, defined as
the comprehension and practical application of financial principles, is of utmost importance
for young individuals (Kaiser & Menkhoff, 2017).
Financial literacy is more than just understanding the value of money and how one
counts pennies. It is about having the skills and knowledge to make informed financial
decisions that will set one up for success in the real world (Fernandes et al., 2014). People
understand basic financial concepts, budgeting and saving, investing and wealth creation,
and, last but not least, debt management. Understanding basic financial concepts is like
learning the ABCs of money. It is about grasping income, expenses, assets, and liabilities.
Every individual past childhood has the experience of acquiring money and the need for
budgeting for it. A person with no financial literacy skills will likely only budget every coin
if they think of saving (Frisancho, 2020). Saving is essential as it is associated with good
spending habits where one only spends a little on impulse buying.
The most essential skill of financial literacy is wealth creation. Investing in skill,
knowledge, or money and watching it grow is the most fulfilling thing in financial
management. Wealth creation helps people have economic stability by leveraging long-term
investments other than working for others below minimum wages (Washington, 2021).
Therefore, wealth creation helps innovators generate income by finding solutions to problems
and deficiencies in the community.
On the other hand, debt management involves borrowing and repaying money
without sinking into debt. At times, people can only do with borrowing. However, creating a
balance by leveraging debts requires finance management skills crucial for maintaining a
positive credit score. Financial literacy is understanding basic financial concepts, budgeting
and saving, investing and wealth creation, and debt management (Urban et al., 2020). It is a
crucial learning program that helps students safeguard the future of their economy. Teaching
financial literacy to secondary school students is crucial in preparing them for the real world.
By understanding basic financial concepts, budgeting and saving, investing and wealth
creation, and debt management, students will be equipped to make informed decisions.
Engaging in teaching strategies such as gamification, real-life scenarios, and guest speakers
makes learning about money fun and practical (Frisancho, 2020). Online tools, educational
websites and apps, and books provide valuable resources for teaching financial literacy. The
impact is significant, empowering students to make informed decisions, breaking the cycle of
debt, and creating a financially responsible generation. It is time to turn financial literacy into
a life skill.
Family influences and economic socialisation theory posits that children and
adolescents acquire skills, knowledge, and attitudes by observing and emulating parental
figures, peers, and educational institutions (Urban et al., 2020). Within financial literacy and
education, this theory posits that the initial introduction to financial concepts and practices
can substantially influence an individual's subsequent financial attitudes and behaviours.
The notion of personal and emotional triggers posits that financial decision-making
may be associated with specific individual characteristics, including self-control, frugality,
wisdom, and responsibility. In essence, logical calculations and emotional and psychological
determinants influence individuals' financial behaviours. Gaining an understanding of these
factors can facilitate individuals in making more informed financial decisions and enhancing
their overall financial welfare (Urban et al., 2020). By recognising the impact of emotions on
financial behaviour, individuals can improve their financial literacy, set clear financial goals,
and implement budgeting and saving techniques to enhance their overall financial welfare.
Financial education programs enhance individuals' financial literacy by providing
education and training on various financial concepts, terminologies, products, and
calculations (Urban et al., 2020). The primary objective of these programs is to cultivate
individuals who possess a comprehensive understanding of various aspects related to
financial management, including but not limited to money and asset management, banking
operations, investment strategies, credit management, insurance policies, and tax regulations
(Goyal & Kumar, 2021). Nevertheless, the efficacy of these programs remains a subject of
contention, necessitating further investigation to ascertain their influence on financial
knowledge, attitudes, and behaviours.

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Financial Literacy Education

The increasing acknowledgement of the significance of imparting young individuals

within me a strong drive to investigate the instructional approaches employed by secondary

the comprehension and practical application of financial principles, is of utmost importance

for young individuals (Kaiser & Menkhoff, 2017).

spending habits where one only spends a little on impulse buying.

and deficiencies in the community.

can substantially influence an individual's subsequent financial attitudes and behaviours.

may be associated with specific individual characteristics, including self-control, frugality,

Financial education programs enhance individuals' financial literacy by providing

education and training on various financial concepts, terminologies, products, and

individuals who possess a comprehensive understanding of various aspects related to

contention, necessitating further investigation to ascertain their influence on financial

knowledge, attitudes, and behaviours.

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