Money is a very serious issue, it’s significance and importance in everyone’s life is inevitable. Therefore, we must all know how to handle our money and know our manage finances. Everyone must learn about budgeting and saving, that’s why, it is essential to impart fund management knowledge to people since a very young age. It is necessary for all of us to know about money management, and the earlier we start being familiar with this topic, the easier it gets for us.
Teaching kids about saving and how to spend their money will allow them to develop good money habits, developing good money habits since an early age is very beneficial and helpful. It teaches us from a very young age to be careful spenders and savers, it also teaches us about how crucial it is to manage our money. Unfortunately, we don’t pay much attention to convey our knowledge to young people- therefore, this topic is heavily neglected and we often see young adults struggling to manage their funds, and asking their parents to help them. It also discourages the young students to start saving for themselves, they don’t understand the importance of savings because such information has never been conveyed to them.
We need more independence of students when it comes to managing their funds, knowing the importance of money and its management also allows the students to start earning for themselves since an early age. Therefore, fund management imparts a sense of independence and personality development. There’s a crucial need for institutions and parents to make the students understand the importance of money and fund management. And, this information must be given to them since a very early age, so that they don’t struggle when they grow up.
Today we are going to speak on how having knowledge about fund management is essential, and it how it helps young students.
Early bird Benefits-
Not everyone is fortunate enough to have financial knowledge; if students are given knowledge about finances and its management, then they start understanding how it works since a very small age. Unfortunately, financial literacy is considerably low in our country since it is neglected by our parents, schools and colleges. This neglect of financial education by educational institutions and parents is totally wrong, no individual should be kept in ignorance about essential information, such as fund management. Millions of Indians start working without having any fundamental knowledge about how to manage their finances.
End the Taboo-
In Indian households, discussing money matters with the kids is considered to be bad- parents think that talking about money might make the child very materialistic and selfish. Hence, the children are kept away from discussions which concerns money. This is a very bad approach taken by the parents because financial literacy plays an essential part in our lives, and someday or the other students will have to manage their finances on their own. The ignorance of the students regarding thing particular topics reflects gravely when they fail to manage their finances, that happens because this particular task can seem overwhelming to many if they are not familiar with it since an early age. Therefore, the lessons learnt at an early age guides the student throughout their lives and helps them manage their finances effectively.
Educational Institutions must take responsibility-
Parents, can not be a very reliable source in imparting financial literacy to their students. They can be ignorant towards many new market schemes. Considering financial information keeps evolving through time and the low awareness of people regarding this particular topic, children must be given information through a reliable source. Educational institutions can take the initiative to make sure that their students are financially literate, they can call well-informed people to discuss the topic of fund management with students and spread awareness about it. Parents may also not be very aware about the situation of the market; therefore, it is essential that students get their information from a dependable expert.
Lack of awareness leads to greater risk –
If young people are kept oblivious and ignorant about this crucial subject, then they get prone to greater risk. This happens because it becomes really easy to manipulate people who are not financially literate. Due to their lack of awareness, young people can make bad investment choices for themselves which only increases their burden. Traditional ideas of investment are imparted to them by their parents, and therefore, they have to stay with these bad decisions for the rest of their lives.
Their lack of awareness also makes then prone to stock market scams, mutual fund collapses and poor investment choices.
Small steps into the financial world-
Financial world is not as confusing as it looks like; the students needs to be slowly-slowly introduced to budgeting, interests, plastic money and bank accounts. It is essential to make their base clear, therefore, special focus must be given to fund management and its effectiveness.
