Education concerning the handling of finances is essential in helping grow people with the ability to make wise decisions. It should become a part of curriculum of schools in the USA and Canada, so the students are aware of the necessary skills to sustain their financial decisions in whole life.

The task of raising the financial literacy levels cannot be overemphasized especially in the current global economies which young people need to maneuver.

The advantages of inculcating financial literacy education

This paper avows the convenience of infusing financial literacy programs into various school systems. The first foreseen benefit is it equips the learners on how to responsibly handle their financial issues in the future. That way, students are in a position to make wiser financial decisions regarding saving, budgeting and even investing and not making common mistakes like accumulating a lot of debt and having a bad credit rating.

Besides, financial education increases self-sufficiency and self-esteem, which are valuable.
amongst others, there are two more benefits of financial literacy namely independence and confidence. That is why it is important that young people are informed especially on finance, so that they can be able to stand on their own and sort out their economical issues.

Prevention of financial mismanagement

Another very important reason why people called for the incorporation of financial literacy in school is prevent the making of wrong financial decisions. The general public is seen to be suffering from low levels of financial literacy and as a result ending up in financial problems.

Also, financial knowledge interventions enable students to appreciate the risks associated with taking high-cost debt. Credit cards and payday loans seem to be rather dangerous instruments to deal with if you are not ready to use them properly.

Encouraging smart investments

Besides, financial literacy fosters wise investments on financial assets. In addition, stock, bond, real estates, mutual funds among others give the students an avenue of understanding how to invest and make their wealth grow. It means when having such knowledge, people can make right decisions about their financial choices, and understand how certain investments can help in achieving some goals.

Knowledge concerning workings of compound interest and the time value of money is without a doubt, a key requirement when investing. Explaining these ideas is beneficial for pupil as it makes them understand the idea behind early investment, and opportune earnings.

Applying the concept of financial literacy in school

Thus, the role of financial literacy is undisputed, but the process of introducing these concepts into schools is challenging. Therefore, it is the responsibility of educators and policymakers to ensure that all aspects of managing an individual’s financial life are included and introduced in the relevant curriculum of the country.

The use of technology can also improve financial knowledge in teaching. Depending on the rendered subject, such semester materials as Web resources, interactive simulation, and financial literacy mobile applications can be useful for students.

The role of educators

Due to the importance of teachers in conveying the financial education, it is evident that they have central responsibilities in the process. Professionals teaching such courses must be well trained to offer proper and efficient training to students. Developing schools’ professional assets in financial literacies that involves improving teachers’ knowledge and skill in the subjects constitutes an acceptable PD practice.

Apart from delivering the curriculum, teachers are required to display sound financial practices to the learners. This paper also pointed out that students are more likely to follow their teachers’ financial management behaviors. They can also design classroom learning environment that allow discussion on issues to do with money and in the process eradicate the stigmatization prevalent on money related issues.

Policy and community support

Programs in financial education can only work if government policies and that of the society are supportive. For financial education to be effective, authoritive bodies of various countries should require their Ministry of education to include a complete program of financial education at every level of education.

It can also involve community organizations since they can also help in the dissemination of information. Community-based organizations such as non-profit organizations, civic associations, businesses and other organizations in the community can supplement efforts to educate the public with more resources and knowledge.

However, it is also equally important that the ideas and values that are being taught in school regarding finances are also supported by the community at large to enhance the results of the schools’ financial education. Thus, it is possible to observe that strong mechanisms are established in the community that distill financial knowledge and exert constant encouragement of youth to be financially literate.