“The main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money… but never learn to have money work for them.” Robert Kiyosaki
The importance of financial education should not be underestimated. It is critical for young people to learn how to take care of their finances. This will not only benefit them but society as a whole.
Europe needs to encourage policies which will lead to future generations of financially literate adults, who can take responsibility for their futures.There are several countries in Europe that are tackling the issue of teaching financial literacy to their citizens. Some are implementing or developing national strategies in this respect, others are at least recognizing the importance of the matter.
Yet, even in a country actively working towards an effective national strategy for financial literacy, one might observe that the process is slow and the concrete development of such programs will not be effective for many years to come. This is unfortunate for current and future generations as well as for the financial well-being of nations seeking to prosper economically. For, in a society where people are in control of their finances, they are more willing and able to engage the market. They are also more motivated to initiate or take control of projects and endeavors that would result in long-term advantages for themselves and the community, such as starting or buying a (job creating) business.
Simply put, the behavior of financially literate people is one which leads to motivation and prosperity for both themselves and the society they live in, as it creates independence. Thus, rather than seek government help to survive, individuals will spend a great part of their wealth in their communities. This would, of course, be a great economic benefit for the respective areas.
It is important to start this education at a young age, whether at home, through carefully provided guidance, or in school, through well-trained teachers. Unfortunately, not enough parents are financially knowledgeable enough to be able to help their children in this sense. Therefore, it is probably a good idea to start teaching the basics of money and finance to children at a young age in schools so they can become well acquainted with the system early enough to be comfortable with it when they are older.