Small Steps, Big Impact: Why Financial Literacy Matters Early

Financial literacy has been a part of me for as long as I can remember. I often make references to my mom when it comes to other areas, but when it comes to finance, my dad takes the lead. Growing up, my dad, through his actions and lifestyle, taught us the importance of financial literacy. My dad grew up in a not-too rich household. He had to fend for himself, and gradually, he rose through the ranks and became independent. His childhood taught him that life is not a bed of roses and that money isn’t something you pluck on trees. Sometimes, I wonder why and how people manage to send money lavishly. Today, in my country, you see youths squandering millions in clubs, buying drinks worth ten times their prices just to show off. What’s even more annoying is that they spend millions on drinks just to spill it on the floor and use it to wash their hands and wristwatches. That’s financial stupidity at its peak.

For today’s Hive Learner’s topic, the community asks us to share our takes on financial literacy. When did you learn about financial literacy? How long did it take before you got a grasp of it? The importance of financial literacy cannot be overemphasized. Over the years, I have realized that no matter how much you have, if you don’t have the right knowledge about how to handle money properly; If you’re not financially literate, it’ll only be a matter of time before you lose your money and go back to square one. For example, a poor and homeless person who wins a thousand dollars in the lottery and then proceeds to gamble with it, only for him to lose it all and return back to zone one—still poor and homeless. That’s where financial literacy comes in.

As I mentioned above, financial literacy is something that has always been a part of me for as long as I can remember, courtesy of my dad. Saving is an important part of financial literacy and it is something I have been practicing since my high school days. At the time, my parents would give me money for snacks to school everyday—pocket money. I had a piggy bank and every day, I would save a certain peerage of my pocket money. I got the idea from my dad and soon enough it became a part of me. At the end of the term, I used it to buy anything I wanted. Usually, a toy or a nice shirt I had always wanted to get. I find it really amusing when I think about my financial literacy journey—I knew the importance of money and how hard it was to make , and I started making intentional decisions at a very early age.

HOW LONG DID IT TAKE BEFORE YOU GOT A GRASP OF FINANCIAL LITERACY.

Interestingly, making intentional financial decisions became a part of me very quickly. Of course, there were times I struggled with it. Another aspect of financial literacy is learning how not to spend money lavishly. It is important to know the difference between needs and wants. Human wants are insatiable. If it was within our powers, we would want to get everything that piques out interest. Financial literacy is knowing that you cannot always get your wants, and that needs should come before your wants. There are times when I really want to get something I see on my friend—whether a nice shirt, or a good cap, but then I think about it well. I ask myself these questions; do I really need this? Don’t I have one already? If yes, what is wrong with the one I have?

Financial literacy should begin in childhood. This is where the role of parents comes in. Children should know that life isn't a bed of roses and that they can't always get what they want. Giving a child everything they want means you're spoiling them – and it'll be very difficult to change them when they grow older. If parents teach their children the importance of financial literacy at a very early age, they'll grow up to make solid and important decisions.

Thanks for reading.