Financial Literacy is important for kids. Learning how to manage money is something that schools don’t teach, and it is something that parents too often think that it is not necessary for children to learn about money. This leads to a lot of people growing out of their teenage and college years and entering the workforce not knowing how to manage their money once they grow up and start earning. Therefore, it is very important for children to learn about the basics of how money works, and how money grows and declines in value.
At UnicMinds, we come from the experience of teaching this finance course to kids across age-groups and to even as young as 6 years old kids successfully. It is well proven that concepts such as entropy, inflation, interest rates, credit, debit, and ledger accounts can be taught to children. They may not apply everything immediately, and that is true for even adults too. When we learn something, we may not apply it immediately. But, this knowledge will help them recognize the situations in their real lives and help these children to practice recognition and application over a length of time, making it more integral to their lives as they grow up. Parents too have a role of participating and encouraging their children to think about money and practice it in a certain way.
Financial Literacy for Kids – Course Curriculum
Lesson 1: The Basic Mathematics of Absolutes, Growth Rates & Rate of Change
Lesson 2: Simple Interest and Compound Interest – Everybody in this world is either paying interest or earning interest. Credit Cards or Loans means you’ve to pay interest
Lesson 3: Earnings, Spendings and Savings
Lesson 4: Purchasing Power of Money Why does the power of money change? What is Inflation – how does your purchasing power reduce? Demand led inflation, Supply led inflation, Central bank policy led inflation
Lesson 5: How low interest rate causes inflation and cripples the economy? How even a high interest rate will cripple the economy? It is about the rate of change, not about high or low. Overall economic value and rate of growth
Lesson 6: UnicMinds Simulation Game – 1: demand and supply (teacher led)
Lesson 7: UnicMinds Simulation Game – 2: markets, banks, interest rate and inflation (teacher led)
Lesson 8: UnicMinds Simulation Game – 3: economy, gdp, and overall mechanics (teacher led)
Lesson 9: Savings and Time value of Money
Lesson 10: Basics of Debt & Equity in a children game
Lesson 11: Creditors and Debtors
Lesson 12: Understanding types of banks & different types of bank accounts; How do banks make money?
Lesson 13: Predicting Future Prices of Common Goods in various countries
Lesson 14: Preparing Ledger Account of your Piggy Bank Account
Lesson 15: Currencies, Currency Exchanges, and the Foreign Exchange Market
To learn more about the same, refer to our Financial Literacy course page.
Learning Finance Early Builds Confidence
Learning finance early helps children to gain confidence knowing that they know what needs to be known, and it helps them to take up roles in college as financiers and organizers of events. It also helps them to understand the value of money and take up smaller opportunities of internship and other work, which always helps them in the long run. For example, in the Marwari community of India, parents start teaching their children the importance of money at a young age. They encourage their children to begin saving as soon as they reach the age of early teens by telling personal anecdotes from their own lives or by giving them financial advice.
Earning has nothing to do with learning about money. Learning about money at a young age will help them internalize the concepts of interest rates, banks, and how money is gained and lost in this world.
Hope this is useful, thank you.