Importance Of Financial Literacy

Financial literacy is the ability to use knowledge and skills to make effective and informed money management decisions. In order for one to become financially literate is a long process that usually starts when your mom and dad give you your first piggy bank to save up for that Baby Alive you have been begging for all year. Then one day it turns into buying a new car or having good credit. Learning to be financially literate is something that many people in my generation lack but is an important skill for us to learn to become successful assets to society in the future. Due to the fact that financial literacy is not something that is taught in ever public school education system, over half of the students in America would have no clue what to do in a finance class in college. If …show more content…
Too many children today want this and want that and never understand how much money is wasted by buying unnecessary things. I too was like this until my parents made me understand money and financial decisions. Going to college is a good example of children not caring or having no concern of money. If a student has a good understanding of financial literacy they will know that going to college and messing around is not a smart decision. Studying, eating according to your meal plan, and attending class would be a smart choice to make based off your financial literacy skills. However, going out every night, eating at fancy restaurants, and skipping class would not be a smart choice but is one that many college kids are making.
Financial literacy is an important thing for our current generation to learn. The ability to use knowledge and skills to make effective and informed money management decisions is something every teen should learn before they live on their own. By becoming a better youth today we can build a better future for