Why is financial education for young people important? – Credit and Money


This is because financial education is not taught in schools and most parents also do not teach their children at home. As a result, when a child reaches youth and starts work and spending, he or she does not know how to handle the money. In addition, the young person has difficulty visualizing the farther future, which contributes to his not seeing the need for financial planning.

Another difficulty faced in youth financial education is that applying the teachings requires effort, discipline, and organization. Many are unwilling to pay the price.

Why is financial education for young people important?

The money runs out

The money runs out

Young people must be taught that money has an end. It may seem more difficult to see this end when it is increasingly common to use alternative forms of payment such as credit card or mobile.

Having overdraft or credit card limits are also obstacles for people to see that their money runs out. Understanding the finitude of money will make the youth value the good and think better before spending it for nothing.

Planning is key

Everyone has dreams in life. Some are simpler and cheaper to perform, others may require a lot of time and a high financial amount.

To make dreams come true, financial planning is essential. If you stop thinking about a wish just as it arises, you have a great chance of not having the monetary conditions to fulfill it.

Here comes the importance of planning. It is possible to make short, medium and long term plans. Once plans are defined, goals that have a stipulated time and value should be created.

Time counts in favor


Investors often say that their biggest regret is not having started before. The sooner a young person receives financial education, the more time he has in his favor.

For example: Adding 10,000 reais in 1 year will require much larger monthly contributions than raising that same amount in 5 years. In addition, investing with longer terms allows interest to work for the young.

Using time as an ally, the young person will have to make fewer sacrifices and be able to reap the benefits of his early planning.

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