The Importance of Promoting Financial Literacy among Youths

The Importance of Promoting Financial Literacy among Youths

During the European Money Week programme, the Malta Bankers' Association will hold a meeting to address the lack of financial education available for youths enrolled in public schools.

As a whole, the banking community sees financial education as a necessary component for strategically improving financial literacy via hosting events, releasing publications, or creating partnerships.

Sponsored Events Taking Place During European Money Week: Over 50 economics teachers have attended a training seminar about the new developments in the financial sector. This is one of many events from European Money Week, a holiday established by banking associations. It's being held annually to encourage young people to participate in classroom sessions, specialized educational programmes, national competitions, and tours held at financial institutions.

When to Teach Students the Essentials of Budgeting: Helping students from more than 30 different countries, this programme serves to promote financial literacy among youths starting at a young age. They will learn effective ways to manage their money before they enter the workforce. They will also feel empowered, knowing that they can live below their means, never having to worry about putting food on the table or affording the roof over their heads.

Benefits of Including a Financial Education in the School Curriculum: It's important to provide a financial education to students in a classroom setting so they can better understand how to reduce the risks of investing, avoid excessive debts, and overcome financial exclusion. Moreover, students taking finance lessons are given more opportunities to explore their careers due to the products being offered in the name of money management. Even primary and secondary schools are implementing financial literacy into their syllabi.

Likewise, the Department of Curriculum Management in home economics, the Central Bank of Malta, the Malta Stock Exchange, and the Junior Achievement Young Enterprise are all collaborating to create a diverse programme of activities geared towards students attending State, Church, and private schools. This is a step in the right direction since the number of students enrolled in these sponsored activities is increasing with each Money Week event.

How Financial Literacy Determines the Monetary Well-Being of Society: Students aren't the only ones who need financial training. Teachers as well, are taking half-day seminars to become familiarized with electronic payment systems, digital transactions on Apple devices, sending out invoices, wealth management, and so forth. These efforts to expand financial literacy demonstrates a collective interest in the banking community to take social responsibility for the low levels of financial literacy among the youth.

Since many customers don't understand the information provided by banks when they purchase financial products, they need to be educated on the basics of economics first. This continues to be an issue because people struggle to plan ahead or choose loans that they can afford to pay back. A financial education is meant to raise awareness about good spending habits among children before they have to make those tough money-related decisions.

Edward Schinik has been with the Investment Manager since 2009 and has been with one Affiliated Investment Manager since 2005.