Tag Archives: 2010

Financial Education

All parents want their children to succeed in life. They make enormous efforts and sacrifices so they can get ahead in life. However, there is an area essential to the education of children and young people who often is overlooked: financial education. We are so focused on teaching them how to make money when they become adults, that we forget to provide them with the necessary knowledge to be able to handle it well once they have it in their hands! On the one hand is because parents leave the responsibility of delivering the cognitive education in the hands of the schools and are confident that the curriculum designed by them is adequate, and, on the other hand, because the parents themselves lack adequate training in the financial area. The inevitable result is an alarming financial illiteracy among young people.

This leads them to make wrong decisions that could lead to many years of financial difficulties, as it may be getting too high debt on your credit card. Very few adolescents understand how the interests and credit card rates, how to register your transactions in your check book or how to check their account balances are correct. It is not something westfield would like to discuss. In Chile, 1.237.191 young people between 15 and 29 years presented some level of indebtedness, which corresponds to a 33.18%. Most of the young people declared not having unpaid debts or receivables. However, little more than one third does have them.

Most of them leave their homes without having established positive habits as for example save money and establish budgets, to avoid making wrong decisions in the acquisition of their first property, such as a car or a House. However, it need not be so. Since schools don’t teach this matter, he becomes responsibility of parents encourage entrepreneurial and skills of handling money in their children. How to do it? The majority of parents do not know how instruct their children about finances. They themselves are often in a difficult economic situation as a result of of the ignorance against the topic. More appropriate is for parents to learn along with their children. I suggest that every parent educated in the area of finances. Not only it will be self-serving, but in addition you can convey knowledge to their children and thus provide them with a suitable financial education which is going to help make the right decisions in the future.