Financial Literacy Education

The increasing acknowledgement of the significance of imparting young individuals

with the necessary knowledge and abilities to effectively manage their finances has instilled

within me a strong drive to investigate the instructional approaches employed by secondary

school educators in the United Kingdom for teaching financial literacy (Urban et al., 2020).

People who need to learn more about money might make bad choices about saving, investing,

and buying. They might need help making a budget, getting into debt, or not planning for

situations or long-term goals, leading to unstable finances and making it harder for them to

become financially stable (Faulkner, 2022). The acquisition of financial literacy, defined as

the comprehension and practical application of financial principles, is of utmost importance

for young individuals (Kaiser & Menkhoff, 2017).

Financial literacy is more than just understanding the value of money and how one

counts pennies. It is about having the skills and knowledge to make informed financial

decisions that will set one up for success in the real world (Fernandes et al., 2014). People

understand basic financial concepts, budgeting and saving, investing and wealth creation,

and, last but not least, debt management. Understanding basic financial concepts is like

learning the ABCs of money. It is about grasping income, expenses, assets, and liabilities.

Every individual past childhood has the experience of acquiring money and the need for

budgeting for it. A person with no financial literacy skills will likely only budget every coin

if they think of saving (Frisancho, 2020). Saving is essential as it is associated with good

spending habits where one only spends a little on impulse buying.

The most essential skill of financial literacy is wealth creation. Investing in skill,

knowledge, or money and watching it grow is the most fulfilling thing in financial

management. Wealth creation helps people have economic stability by leveraging long-term

investments other than working for others below minimum wages (Washington, 2021).
Therefore, wealth creation helps innovators generate income by finding solutions to problems

and deficiencies in the community.

On the other hand, debt management involves borrowing and repaying money

without sinking into debt. At times, people can only do with borrowing. However, creating a

balance by leveraging debts requires finance management skills crucial for maintaining a

positive credit score. Financial literacy is understanding basic financial concepts, budgeting

and saving, investing and wealth creation, and debt management (Urban et al., 2020). It is a

crucial learning program that helps students safeguard the future of their economy. Teaching

financial literacy to secondary school students is crucial in preparing them for the real world.

By understanding basic financial concepts, budgeting and saving, investing and wealth

creation, and debt management, students will be equipped to make informed decisions.

Engaging in teaching strategies such as gamification, real-life scenarios, and guest speakers

makes learning about money fun and practical (Frisancho, 2020). Online tools, educational

websites and apps, and books provide valuable resources for teaching financial literacy. The

impact is significant, empowering students to make informed decisions, breaking the cycle of

debt, and creating a financially responsible generation. It is time to turn financial literacy into

a life skill.

Family influences and economic socialisation theory posits that children and

adolescents acquire skills, knowledge, and attitudes by observing and emulating parental

figures, peers, and educational institutions (Urban et al., 2020). Within financial literacy and

education, this theory posits that the initial introduction to financial concepts and practices

can substantially influence an individual's subsequent financial attitudes and behaviours.

The notion of personal and emotional triggers posits that financial decision-making

may be associated with specific individual characteristics, including self-control, frugality,

wisdom, and responsibility. In essence, logical calculations and emotional and psychological
determinants influence individuals' financial behaviours. Gaining an understanding of these

factors can facilitate individuals in making more informed financial decisions and enhancing

their overall financial welfare (Urban et al., 2020). By recognising the impact of emotions on

financial behaviour, individuals can improve their financial literacy, set clear financial goals,

and implement budgeting and saving techniques to enhance their overall financial welfare.

Financial education programs enhance individuals' financial literacy by providing

education and training on various financial concepts, terminologies, products, and

calculations (Urban et al., 2020). The primary objective of these programs is to cultivate

individuals who possess a comprehensive understanding of various aspects related to

financial management, including but not limited to money and asset management, banking

operations, investment strategies, credit management, insurance policies, and tax regulations

(Goyal & Kumar, 2021). Nevertheless, the efficacy of these programs remains a subject of

contention, necessitating further investigation to ascertain their influence on financial

knowledge, attitudes, and behaviours.