All of our lives weâ€™re taught to go to school, get good grades and get a good job. During our studies throughout our education, we are not taught about the basic principles of finance or economics. We’re not talking about advanced principles in these subject matters. This reference is more basic budgeting and personal finance. What is missing in the curriculum, are courses that put as much emphasis on economics and budgeting as they would on reading, writing and arithmetic. It is important for our children to understand how the economy works and more importantly how the economy can impact our personal lives.
We think that just because we are discussing the economy or budgeting, that children would not understand or be interested. There could be nothing further from the truth with this statement. On the contrary, children are very interested in basic economic principles and theories. What they want to know more importantly, is how to make more money. After all, when these children sit in front of the TV and watch their favorite entertainers or support athletes perform and then see all of the trappings of wealth they acquire as a result of their talents, they need to know how to manage money. Whether it’s $50,000 a year, $200,000 a year or $2,000,000 a year, children need to know basic budgeting principles. Not only do they need to know, but many of them want to know how to make money and how to properly manage it. For children, it’s all about teaching it in a way that can be engaging and maintain their attention throughout the study. Whether parents are teachers realize it, children are more aware now more than ever before about money.
They can get it.
If children are capable of learning reading, history or how to solve algebraic equations, they are perfectly capable of understanding basic economic theories. So this begs the question, why are we not teaching our children basic economic principles at the elementary school levels? We teach our children everything else but we don’t teach them this. This pattern of learning not only starts in elementary school but continues throughout middle school, high school and on into an individual’s college career.
They don’t really learn it in college.
Even though children advance to higher levels of learning, that doesn’t necessarily ensure they will obtain a solid education in basic economics. Most often, once children graduate from college, they go on to their respective colleges to learn more about their specific field of study. For individuals who choose to major in business, they may have the opportunity to learn about basic economics and how it could possibly affect their finances, but what about the individuals who study other subjects in college? For example, an individual who wishes to go to college to study psychology. This individual would more than likely never take a business course in college. Understanding basic economic principles are just as important for them as it would be for a business major. Once you go to school and get your college degree, it is important to understand how finances work. If you’re not able to properly manage the $75,000 a year salary, then you are susceptible to falling into the trap of being financially illiterate.
No matter how much education an individual receives from elementary school to college, if proper economics are not taught, these individuals have a high probability of falling into the trap of improper use of credit, not understanding how interest rates work and more importantly lack the fundamental knowledge necessary to budget their finances.