This topic is near and dear to my heart. I was excited when Experian asked me to be on another guest expert panel. I believe there are many barriers when it comes to delivering financial education in underserved communities. It is exactly why I do what I do today. Growing up in an underserved community, I wanted to share and be an advocate for. Unfortunately, financial literacy is still not taught in schools in these areas. Some adults don't have enough financial information as they need and subsequently do not pass it down. As a result these communities tend to pay more for financial services. They pay more in interest charges as the lower their credit score is, the higher the interest they pay. They also don’t get the benefit of compound interest, which is a silent hero. The focus really needs to be on these communities.
Even without internet access, there are ways to find resources for your financial education. You can find local libraries, donut shops, friends or family members. There are also many, many books. Vol 1 of It'$ My Money is a great starter book. Schools should have a role in providing financial education. There should be a requirement in schools for age appropriate financial education. School is where our youth learn so many subjects and the fundamentals of personal finance should be thought as well. It also should be reiterated year after year as it needed it all their lives. This blog gives more information on how to talk to your kids about money.
In this day and age, personal finance should be required in schools, not just “offered,” especially during the high schools years. Another financial educator mentioned, “Individuals with little or no relationship with a bank can struggle to manage their funds effectively and to save, prepare, or borrow for emergencies. Says, Jorell Bland’.
We have to remember before the last year of high school ends, many are signing their names to one of the most expensive decisions of their lives, student loans, without enough knowledge on its long term effect. As the young men and women move toward college graduation, these financial education classes will assist them with delayed gratification. They will learn to budget and only spend what they can afford to. They will also know to save and take care of their needs and then wants, in that exact order! All of this works to help achieve financial security.
Many of us wants to achieve financial freedom but you can’t achieve what you are not educated on. The more you know, the better chance you have! Managing your money well can have positive impacts your financial health and your physical health. Financial chaos can cause stress. Being financially literate, coupled with managing money has a direct correlation to a reduction in stress and anxiety; which supports positive health. It also clears your mind. It allows you to be present and have healthier relationships with yourself, spouse, children, family and friends. Rahkim Sabree, personal finance enthusiast, added, “decreased stress, anxiety, depression, healthier choices around food and exercise, health screenings, and a better quality of life can all come from a foundation of financial literacy.”
All in all, teaching finances has personal benefits and impacts on generations to come. Financial exposure helps along with good financial behaviours. If taught and shown, they will have a greater impact on future generations. It’s the “do I do, not as I say” that is sustainable.
In the need of a resources that can help you manage your money:
If you want to DIY it, you a grab some helpful resources that I have created here
Want to start building credit or repairing credit? A secure credit card is a good way to make do either. Check out a secure credit card here.
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