Young people and Money: views vs Reality
Let’s start by asking ourselves the following questions in order to find the truths about Young people and Money: views vs Reality.
- What percentage of young people are aware that a financial strategy at an early age can guarantee wealth in the future or at least financial freedom?
- How many know how to begin investing and what to invest in, both within their social circles and on social media?
- What percentage will have privileged financial information that motivates them to explore and learn about investments for the next 20 years?
- What percentage of youth, especially in less developed regions, lack access to financial information?
All these questions share a common factor: many young individuals lack knowledge and access to finance and its broader implications. Despite living in a modern era with nearly unlimited access to social media, the internet, and the sensation of artificial intelligence, there still exists an overwhelming percentage of uninformed young people regarding the benefits of financial literacy. Interest and knowledge about financial matters can vary widely depending on factors such as education, socioeconomic environment, and public policies in each country or region.
Beyond Paychecks: Understanding the Financial Challenges Faced by Young People
The perception of the population towards young people and finances is complex and nuanced, with divergent viewpoints that don’t always reflect reality. On one hand, there’s a belief that young people are irresponsible with money
This perception is based on some observed behaviors, such as:
- Greater tendency for impulsive purchases.
- Higher spending on entertainment and activities with friends.
- Less aversion to risk, which can lead to hasty financial decisions.
- Lack of experience in financial management, resulting in errors.
However, we must also consider that:
- Today’s youth face a more challenging economic context than previous generations. Economic crises, high unemployment rates, and rising housing costs make long-term financial planning difficult.
- Young people have greater access to information and digital tools that can help improve their finances. Numerous apps and online platforms allow young individuals to manage their finances more efficiently.
- An increasing number of young people are interested in learning about finances and making responsible decisions with their money. Financial education is gaining ground in schools and universities, and there’s a wealth of educational resources available online.
looking for solutions and progress between Young people and Money.
It’s essential to avoid generalizations and stereotypes when discussing young people and finances. Not all young individuals are irresponsible with money, just as not all adults have excellent financial management skills.
While analyzing each case individually and considering specific circumstances can be complex, we can identify patterns to establish profiles. Moreover, promoting financial education among young people is crucial so they can make responsible decisions with their money.
What should we do?
The Relationship Between Young People and Finances in most of the world:
The relationship between young people and finances is a complex and ever-changing issue in today’s society. It is crucial that both adults and young people work together to improve financial literacy and promote responsible and motivating decision-making.
Starting Early:
Financial education should start at an early age so that young people have enough time to learn and apply financial concepts in their daily lives.
Incorporating Financial Education into the Educational System:
Basic financial concepts such as saving, spending, investing, and credit should be part of the school curriculum. This will help young people understand the importance of financial management from an early age.
Learning by Doing:
Young people learn best when they have the opportunity to put what they have learned into practice. Therefore, it is useful to provide them with opportunities to handle money, such as having a small allowance or a part-time job.
Encouraging Saving and Investing:
It is important to encourage young people to save and invest money. This will help them understand the value of money and the importance of planning for the future.
Teaching about Credit and Debt:
It is essential for young people to understand how credit works and the consequences of going into debt. This will help them make informed financial decisions in the future.
Utilizing Online Resources:
There are many free online resources that can help young people learn about finances. These resources can be a great way to supplement the financial education they receive at school or at home.
Encouraging Open Discussion about Money:
Talking openly about money can help young people feel more comfortable with the topic and ask questions about anything they don’t understand.
Additional Tips for Adults:
- Use simple and relatable language. Avoid using complex financial terms that young people may not understand.
- Make learning fun and interactive. There are many games, activities, and apps that can help young people learn about finances in a fun and engaging way.
- Be a good role model. Young people learn by observing the adults in their lives. Make sure to model responsible financial habits.
- Let them know you are there to help. Young people may have questions or concerns about their finances. Make sure they know they can come to you for help and advice.
By working together, we can help young people develop the financial skills and knowledge they need to make responsible decisions and achieve their goals.
