Financial Literacy for Teens

By: Sumedha

What is it? 

Financial literacy is the knowledge and ability to manage money and meet your financial goals. This teaches financial management , budgeting and organizing which helps us to grow more stable and resilient. For teenagers, it is important for them to learn about finance because they may encounter responsibilities which could shape their future.(Investopedia 2024) 

Why is it important? 

Financial literacy helps students make smart financial choices and manage their money well. As they go through school and colleges, they may face challenges like student loans or credit card debt. According to a survey , about 54% of teens are concerned 

about their finances in the future. Thus, financial literacy is important for teens.(Experian 2024) 

Advantages 

If teens know about finances then they have various advantages like - 

1. Good financial decision making - this helps them taking good decisions on finances and help to manage money effectively 

2. Reduction of debt levels - this helps them to avoid debts and reduce burden on them compared to their peers. 

3. Building wealth and investment - since they know about finance they can start building up their wealth and invest in various things and earn money. 4. Financial independence - this teaches them how to be financially independent and help them reduce the stress from finances 

5. Provides skills for workforce - these skills help them to earn a job too because many of them require financial skill so here they have an advantage of getting job through finance too (Aditya Birla World Academy and EuroSchool India, n. d.) 

Conclusion 

Financial literacy is vital for teenagers as they prepare for adulthood. By improving their understanding of money and encouraging responsible attitudes, society can equip teens to navigate financial challenges and build a secure future. Education, appropriate use of technology are key to achieving this goal.

REFERENCES 

Investopedia. (n.d.). Financial literacy. Retrieved November 20, 2024, from https://www.investopedia.com/terms/f/financial-literacy.asp 

Experian. (n.d.). What is financial literacy and why is it important? Retrieved November 20, 2024, from 

https://www.experian.com/blogs/ask-experian/what-is-financial-literacy-and-why-is-it-imp ortant/#:~:text=Financial%20literacy%20is%20the%20knowledge,budgeting%2C%20sa ving%20and%20managing%20debt. 

Austin Telco Federal Credit Union. (n.d.). Why is financial literacy important for students? Retrieved November 20, 2024, from 

https://www.atfcu.org/about/telco-blog/why-is-financial-literacy-important-for-students 

Nova, A. (2022, June 1). 54% of teens feel unprepared to finance their futures, survey shows. CNBC. Retrieved from 

https://www.cnbc.com/2022/06/01/54percent-of-teens-feel-unprepared-to-finance-their-f utures-survey-shows.html#:~:text=The%20survey%20also%20found%20that,would%20 help%20ease%20their%20concerns. 

Aditya Birla World Academy. (n.d.). The importance of financial literacy for students. Retrieved November 20, 2024, from 

https://www.adityabirlaworldacademy.com/blog/importance-of-financial-literacy-for-stude nts 

EuroSchool India. (n.d.). The importance of financial literacy education and its benefits for career success. Retrieved November 20, 2024, from 

https://www.euroschoolindia.com/blogs/financial-literacy-education-benefits-career/