Financial Literacy Must Be Taught Everywhere

Last Updated on: September 20, 2023

Whether we like it or not, the subject of money and financial literacy (or illiteracy) will play a significant role in our lives sooner or later.

That is why it is incredibly impractical that our homes and schools only emphasize getting a college education to land a good job and determine future success

Though this is not to devalue the importance of our education, it is essential to teach what to do with money once you start earning it.

Because eventually, the children trained to find a good job will grow up and earn enough but still be clueless about properly handling money if not equipped with the knowledge early on.

From our primary until collegiate years, many would think that money is an abstract concept that can only be attained through working in corporate or government jobs for eight or more hours, five days a week, until the day they retire.

However, that concept is no longer the case for our current generation, and proper money management is no longer exclusive to people with business degrees.

Freelancing, owning a business, trading, and social media can be viable sources of income if done right. 

However, earning money is not enough. It would be best to learn how to keep it and make it work hard for you.

What is Financial Literacy?

Before we look at the importance of teaching financial literacy everywhere, we must define it.

Financial literacy is a person’s cumulative competence, skills, and knowledge to make informed decisions regarding money matters, including investments, business, personal finance, retirement, and more.

Now we can proceed to the importance of financial literacy in every place that we’ll go.

Financial Literacy Starts at Home.

Photo Of Woman Tutoring Young Boy About Financial Literacy
Photo By Julia M Cameron On

Ideally, proper financial literacy is taught at home by our family. But what will happen if our parents are not financially literate themselves? That will only cause many issues in our outlook toward money.

In 1 Timothy 6:10, Paul said that the love of money is the root of all evil. However, many people assume that money is what causes evil which is inaccurate.

Remember that money is neutral and is only a tool. How we look at and handle it will determine whether it is good or evil.

Going back to our homes, talking about money is almost taboo, and calls money talks “adult talks.”

When time passes and the children earn their own money, they may also be as clueless as their parents.

But this scenario of unawareness of financial literacy may have been more prevalent in Filipino homes.

If we look at our Chinese neighbors, they will show that money talks should not be avoided. Instead, it should be adequately taught within the family.

Financial Literacy Should Be Taught at School.

Anonymous Ethnic Tutor Helping Little Multiracial Students With Task In Classroom
Photo By Katerina Holmes On

We recently received good news about how DepEd plans to expand financial education to the K-12 curriculum. 

This is an excellent step towards battling the culture of money mismanagement among future adults.

But the problem that I see is in the implementation. The “London Culture” or loan dito, loan doon, is very endemic among public school teachers.

Think of it this way. How can someone knee-deep in debt tell their students to avoid consumer loans when they are busy paying for a new cellphone they bought using debt?

Or how will they teach their students to save and invest for their future if they don’t have any savings and investments themselves?

Remember that integrity is critical in teaching. It is not enough to know. What is essential is to understand and apply the concepts learned.

In the past years I’ve been teaching, I noticed that the salary is not the problem with teachers, but the institution’s incorrect mindset, improper money management, and widespread loan culture.

Financial Literacy Should Be Taught at Work.

A Close Up Shot Of A Person Stacking Coins
Photo By Towfiqu Barbhuiya On

Lastly, for employees, our place of work is where we will stay for most of our adult lives. 

It may be temporary while building a foundation for our future, or it can be a lifetime endeavor.

So as salary arrives, it is crucial to know the importance of budgeting and living within your means

Unfortunately, these are some of the simplest financial literacy concepts that are still rarely applied.

Where I work as a college instructor, we are required to attend the annual employee re-orientation, and I found it very alarming that a whole afternoon is dedicated to how to take out loans.

I was frustrated that not even an hour for basic budgeting or personal finance was allotted. Instead, the speakers will discuss maximizing your loan amounts, how long to pay for them, and more.

But in my previous work in an IT consultancy firm, there were many seminars within the company teaching about the importance of personal finance and investing.

Financial Literacy Should Be Learned Even as a Freelancer.

Another thing, more and more people are taking the freelance route. Having no one to teach you makes it harder to learn about personal finance. So studying on your own will be crucial. 

Though the potential for earning is high, having a variable income makes budgeting a little trickier.

Remember that as a freelancer, you don’t have employee benefits, so ensure that you are adequately insured and your emergency funds intact. 

Final Thought:

Through my journey in personal finance, I learned that it is crucial to teach children personal finance as early as possible.

This is not to teach them that money is all that’s important but to instill that what we need is contentment and that, most often than not, we can live a modest life while doing a job that serves our purpose.

Financial literacy does not equate that you’ll be rich, but wealth can be a by-product through time.

Never stop learning because life never stops teaching. God bless!

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