Introduction:
As parents and educators, it’s our constant goal to provide our children with the fundamental life skills they need to succeed in this day and age. While it is true that subjects like math, physics, and language are crucial, there is one essential skill that receives little attention, yet has a significant impact on our children’s future: financial 8’literacy. Educating children in money management and financial decision-making at a young age is just as important as teaching them to read, write and calculate.
Significance of imparting financial literacy to children:
It lays a foundation for their financial well-being for a lifetime. Early education on financial literacy paves the way for lifelong smart money management. Exposure to the ideas of money, saving and budgeting helps kids form a feeling of financial responsibility that lasts throughout their lives.
It helps adopt smart money habits. By educating children about financial literacy, we help them build smart money habits that will help them succeed financially. Making wise financial decisions begins with recognising the worth of money, the difference between needs and wants, and the significance of saving.
It helps in confidently navigating the real world. As children grow, they will come across different financial scenarios, like opening a bank account, handling a budget, or making wise decisions about purchases. If they have a strong basis in financial literacy, they can approach these issues with confidence and make wise decisions.
Long-term financial planning is encouraged by the knowledge of financial literacy, which motivates children to think ahead and create realistic financial objectives. Learning how to save for significant expenses like education, a car, or even retirement gives them the power to take control of their financial future and make plans for a secure one.
It helps in avoiding debts and financial pitfalls. Many of us struggle with money problems because of credit card debt, excessive spending, or lack of savings. By imparting financial literacy to children we can help them realize the challenges of debt and the value of living within their means, helping them stay clear of common financial problems.
It develops independence. Teaching youngsters about money management helps them feel independent and responsible. They grow less dependent on elders for financial help and take control of their financial lives when they understand the concepts of budgeting and saving.
It empowers future entrepreneurs. Financial literacy is an essential skill for kids with entrepreneurial aspirations. They can use it to manage profits and losses, understand the financial aspects of running a business and come up with strategic decisions that will help their business expand.
Financial Literacy course at Learner Circle:
The Financial Literacy course offered by Learner Circle has an extensive and well-rounded curriculum that covers everything from investment to real estate, to business. Our thoughtfully created program equips the child with real-world financial knowledge and skills that they can use as they get older, ensuring they are fully prepared to make wise decisions.
Enroll your child in Learner Circle's Financial literacy program:
Break-down of our course:
Introduction to basics: The course begins with an introduction to fundamentals. We start by defining finance and understanding how important it is to our daily lives. Students acquire a foundation in personal finance and become aware of how the choices they make, affect their well-being. We explore the ideas of necessities vs wants, assisting students in recognising the difference and helping them shape their decisions. Setting financial objectives becomes a crucial component of the journey enabling learners to take the necessary steps and plan for their financial future.
Finances- Managing money: In this section, we provide the students with the tools they need to successfully manage their finances. Students get a thorough understanding of income, expenses and the importance of savings. We emphasize the need of saving before spending as we assist students in understanding the formula of Income= Savings + Expense. Students can take charge of their financial lives by managing their finances and keeping track of their spending and developing budgets. The course explores ways to minimise expenditures for major expenses like housing, commuting, and food. Additionally, the need of preserving an emergency fund for unforeseen events, as well as a variety of financial aspects like checking accounts, saving accounts, and CDs are covered by the tutor.
Investing in bonds and equities: As students progress, they explore the world of bonds and equity investing, They develop an understanding of the difference between active and passive investing as well as the relationship between risk, reward, and return on investment. The course provides the students with a thorough overview of the varied investment possibilities by covering mutual funds, ETFs and REITs. Students also learn the idea of investing in index funds comprehending both its advantages and potential disadvantages. This section also covers financial advisors, including how to determine when and if you might need one, the distinction between fee-based and commission-based advisors, fiduciary vs. non-fiduciary advisors, and the growing role of robo advisors.
Real estate as an investment: Learner Circle introduces real estate investing to its students in this module. Students learn about various forms of real estate and how to tell the difference between a primary residence and an investment property. The idea of house hacking is explored as a novel technique to control living costs and accumulate wealth. Learners also gain an understanding of commercial real estate, including its possible advantages and challenges. They compare typical index fund investing to short-term vs long-term rental income allowing students to make informed decisions about possible investment options.
Entrepreneurship: Learner Circle acknowledges that entrepreneurship is an essential element of financial literacy. In this module, we explain what it means to be an entrepreneur and explore how to come up with a novel business concept. To succeed in their companies, students learn about product-market fit and pricing tactics. The course examines the idea of launching a side business and instructs students on when it might be the right time to make the switch to full-time entrepreneurship. Students are better equipped to make the right decisions as they start their businesses when they are aware of many funding possibilities such as bootstrapping, loans, grants, crowdsourcing, and venture capital.
Our in-depth financial literacy programme at Learner Circle gives young minds the information and resources they need to make wise financial decisions, establish and meet financial goals and build a secure and prosperous future. We enable our students to become financially savvy individuals who can confidently navigate the intricacies of the financial landscape. Our sessions include stimulating talks, useful activities and examples of real-world scenarios.
Click here to read an interesting article: 5 tips to teach money management to kids: every parent should know
Conclusion:
Giving our children the gift of financial literacy will benefit them for the rest of their lives. It helps them make wise decisions and successfully navigate the real world by educating them about money management, budgeting, saving, and investing. As parents and educators, it is best to start early and give our children the resources they need to achieve financial security and put them on the right track for a brighter future.
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