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5 Ways Youth Financial Education Can Change the World

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5 Ways Youth Financial Education Can Change the World

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Most people agree that financial education is important, but it’s typically not a topic at the forefront of social issues in most circles. And especially when communities are in crisis like we’ve seen recently, personal finance education is nowhere near the top of the list of possible solutions.

Maybe it should be. The element of financial distress is a key ingredient mixed in with all the social unrest that spills over when emotions reach a boiling point. We can’t ignore the cries of those  who’ve been living at a disadvantage for far too long, begging for justice, equity and hope long overdue. We must listen. We must enact change. We must empower.

In our area of influence, empowerment involves financial education. Our nonprofit organization, the Center for Financial Empowerment, describes five ways   financially educated youth can make a real difference in today’s world.

youth financial education

Financial confidence makes young people more positive about the future

Knowledge breeds power and hope. By investing in youth financial education, we give young people the knowledge and skills to manage money and credit wisely. They gain confidence in their ability to create an economically secure future. When we invest in financial education, we invest in hope!

Financially informed young adults are more responsible

Let’s face it, young adults are known for being financially irresponsible. That’s why youth financial literacy education is more important than ever. When young people receive effective training in wise money management practices, along with habit-building exercises to help them apply the skills, they become much more responsible with money and credit.

Financially knowledgeable young people are better consumers

Young people  who’ve learned smart money management skills choose carefully when they spend money, and their healthy saving habits make them better prepared for economic stressors. They also have stronger credit, which makes them better qualified for bigger purchases like a car or home. Financially savvy young adults strengthen the local economy in which they shop and live.

Financially stable young people can positively influence others

Today’s youth like to share, and once they learn smart financial skills, they can influence their friends and family members to think differently about money and credit, too. For instance, our former class participants regularly report they’ve become the go-to person among their friends for money management advice. Why? Because they make wiser financial choices and their friends notice.

Financially confident young people are more generous

The younger generation is actually more generous than most people realize. While financially strapped youth may only be able to volunteer their time, those who regularly follow a personal budget and save for emergencies are more likely to give monetarily to causes they believe in than their cash-strapped peers. To be specific, 84% of them, on average, donated to charities in 2018.

Any kind of meaningful change happens with one person at a time, one community at a time. Financial empowerment is no different. When effective financial education is delivered purposefully and consistently to disadvantaged youth, it can have powerful, long-lasting effects. Financial education does more than just expand their knowledge. It gives hope, pride and purpose to people on whom we’re counting for leadership tomorrow.

Want to empower the next generation for financial success?

Make a donation to support the work of the Center for Financial Empowerment, or volunteer to help as a financial mentor/coach at an upcoming financial literacy event.