A Talk Into Financial Literacy

 

    Financial Literacy is the ability to understand money and how it works : "It starts with paying yourself 1st and making smarter financial decisions today" ( Nelson Soh, TED 2022).

 Education :

       The world expects all adults and teenagers at a certain age to be financially literate by knowing how to handle money. For example : successfully know how to use various financial skills, including understanding basic financial concepts, managing debt, budgeting, saving, investing, and comprehending financial risks. As Kruse (2019) said : " when should people learn these lifelong skills of financial literacy and entrepreneurship? Who should be teaching them and in what environment?" (p.42).

        Promoting financial literacy education from an early age is an uppermost. By introducing financial literacy programs in educational institutions such as High School and College can give a basic understanding of financial concepts and encourage responsible financial behaviors. Integrating practical financial management skills into the curriculum can prepare students to navigate real-world financial challenges effectively. By doing so, teachers should be the ones teaching the subject, but according to a 2016 PwC report, “Bridging the Financial Literacy Gap: Empowering Teachers to Support the Next Generation,” another factor is the lack of resources, including curriculum, available to teachers to help support the lessons. And the report indicates that teachers don’t feel comfortable teaching financial literacy because they don’t have the knowledge or expertise ( Kruse, 2019, p.43). 

        If teachers do not have the capacity to introduce this subject, it should be the government responsibility to make those resources available for them. 

Results

Social Media effect :

        The lack of knowledge about financial literacy started showing with the 1st social media generation (the millennials) in 1980. The trend of showing what's the best influenced us to spend on what's unnecessary. If being financially literate is making smarter choices, we started becoming financially illiterate : spending huge amounts of money to impress the world for a brief moment by posting/tweeting.

In Everyday Life :

        We started spending more and earning more by working endlessly just to satisfy our ego. We started craving gratification ( Nelson Soh, TED 2022) for others.  By working more we started spending more just to impress without thinking about our financial future. Thus, we can conclude financial things and money own the new generations. 

A New Vision

        We have to be financially literate. If we cannot learn from the teachers in school. Then it is our responsibility to learn from books, the internet and also from mentors. 

        Being Financially literate doesn't only help us financially but also mentally. It helps reduce stress since you won't have to worry about budgeting and saving all the time. It can also help prevent mental issues such as depression and stress- related disorders.

Being financially literate makes us free. ( Nelson Soh, TED 2022)

           It is never too late to start making better choices but the earlier, the better. We have to start making SMART ( Specific, Measurable, Achievable, Relevant, and Time-Bound) goals to help us become a better version of ourselves financially.

Becoming financially literate is non-negotiable. ( Nelson Soh, TED 2022).

    Reference :

- Kruse, Nicole, Money Matters, 2019

- "Financial Literacy & The Social Media Generation" by Nelson Soh. YouTube, uploaded by TEDx Talks, 21 January 2022, https://youtu.be/MoFj7meoHkY?feature=shared