Financial literacy is increasingly recognised as a crucial 21st-century skill for young individuals. Write a letter to the editor of a local daily

This question is related to finance education. We will write a letter to the editor of a local daily discussing the benefits of providing financial literacy education to children.

Write a letter to the editor of a local daily on the benefits of teaching financial literacy to children

Question. 

Answer.

Chitra Mahapatra

Counsellor

Puri, Odisha

January 26, 2025

The Editor

[Name of the Newspaper]

[Address]

Subject: The Importance of Financial Literacy Education for Children

Dear Sir/Madam,

I am writing to express my concern over the lack of financial literacy education among young individuals in our society. As a counsellor, I strongly believe that equipping children with the necessary skills to manage their finances is not only important but also an essential life skill that should be introduced at an early age.

Learning financial independence from a young age can have profound long-term benefits. Children who are taught how to save, budget, and make informed financial decisions are far more likely to grow into responsible and financially stable adults. They will be better prepared to avoid common financial pitfalls such as debt, overspending, and poor saving habits, ensuring they can manage their resources effectively throughout their lives.

Furthermore, understanding the power of finances empowers young learners to make better choices about their future. It helps them realise the importance of setting financial goals, the significance of compound interest, and the impact of responsible money management. In today’s world, where consumerism is high, young people are often targeted by advertising and other marketing strategies. Financial literacy provides them with the tools to critically evaluate such pressures and make sound financial decisions.

Skills learned in childhood tend to have a lasting impact, as these early experiences shape long-term behaviours and attitudes. A solid foundation in financial management can influence a person’s overall attitude toward money, leading to better saving habits, a stronger sense of financial security, and reduced stress about financial issues.

In order to raise awareness about the importance of financial literacy, I suggest that schools incorporate it into their curriculum, beginning with basic concepts such as saving and budgeting. Additionally, workshops or seminars for parents and guardians can be organised to help them understand the critical role they play in nurturing these skills in their children. Collaboration with local banks and financial institutions could also be an effective way to promote practical learning experiences, such as budgeting exercises and real-world simulations.

By spreading awareness and fostering financial literacy from a young age, we can pave the way for a generation that is not only financially responsible but also empowered to make informed decisions that will shape their futures positively.

Thank you for considering my thoughts on this important issue.

Yours sincerely, 

Chitra Mahapatra

Counsellor, Puri, Odisha