For an average Australian, ‘financial literacy’ is probably a term that is heard very often. Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting and investing.
Financial literacy is a lifelong pursuit. It forms the foundations for our relationship with money. The earlier in life you begin the financial literacy journey, the better off you will be. For many of us, the journey starts with our first part time jobs, or when we start saving for a goal, but what if it began much earlier than that. What if financial literacy was taught explicitly at schools so that the next generation have a better understanding and relationship with money?
Financial literacy is something we are passionate about. We’ve discussed it on It’s Never About Money (see the episodes with Matt Heine and Darian Clark), we’ve traveled to Papua New Guinea to help contribute to school curriculums with CUFA, and we’ve even produced our own kids financial literacy booklet, The Use and Uses of Money.
Understanding the uses and value of money is key to financial literacy. Introducing young children to these concepts in easy to understand ways can help set them up for a positive relationship with money. It can start very simply; earning money by working, saving up your money to buy something in the future, and even giving money away to charity.
When I sat down with my 6-year-old nephew, Julian, we talked about all these financial literacy concepts. Watch the video here:
If you want to start having these types of conversations with your children, download our booklet. In it we breach the topic of money and how it intertwines with the other pillars of wealth, such as health, careers, personal growth, family and relationships.
We can all do our part to educate the next generation about financial literacy and give them every chance to achieve success.
