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Financial literacy

Why is it important to teach students about financial literacy? Young people encounter money from an early age, but there is very little or no talk about money in the family, in kindergarten, school and college, and so on. The consequence of insufficient education related to financial literacy is that young people do not know how to assess the risks and challenges in the financial market, and this leads to poor business decisions, falling incomes and excessive indebtedness. It is important to raise awareness of the importance

their own behavior and disposal of goods and acquiring the habit of saving and making smart decisionsin shopping. Also, it is very important for children to understand that there is a big difference betweendesire and need. Need something that must be satisfied (hunger..), and that desires are somethingwould love to have or work. Desires do not have to be satisfied. If, for example, we tell a child that he has 2 euros in his pocket today and ask him what he will spend the money on and in what way. If a child says: I will buy juice that costs 1 euro, candies that cost 1 euro. What would that mean? This would mean that the child has satisfied his desires (juice is a luxury here, it is not a primary need, because thirst can be quenched with water), but not needs, such as the need for food (buying a bagel, fruit). The child could buy fruit and a bagel, and the rest (1 euro to save for a larger wish - put in your piggy bank).

It is very important to encourage children from an early age to save. We have to notice that consumerism has taken a big place, that through “quiet ways” using children is encouraged to buy (and what we don’t need). In Croatia, for example, now in one store there is a promotion "for 12 euros spent" you get 1 Stickeez, collect them all ...

It is necessary to teach children about basic financial concepts such as: Bank - a place where you borrow and keep money, Credit - money

which is lent to you by the bank, Rata- part of the loan that you return to the bank every month, Interest- price you pay to the bank that lent you money, Banker- person working in the bank, Savings- person who saves money in the bank, Savings- when you keep your money , Bank account - Bank account where you have money that you can use for your needs, ATM - Machine from which you can withdraw money with a card, Debt - Money that you have to return to the one who lent you that money.

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