Why financial education is necessary for care leavers?





Every year thousands of young people leave the care and get into the transition period of adulthood, which is never easy. The first question that the stranger world puts in front of them is ‘how you are going to survive now?’ This is obviously majorly related to the financial aspect, which arises vitally. However, most of the youngsters do not have any precise answers to this situation. They are after all new to the world where people survive ‘on their own’.


Usual financial things that care leavers should know but they don’t know –

·         How to pay bills?
·         How to manage funds?
·         How to open a bank account?
·         They are unable to understand the complicated procedures of benefits for care leavers.
·         How to plan for future


The threats that cause due to lack of financial knowledge

·         They fail to get a home to live
·         They get into the vicious circle of debt
·         No family for any financial backing if things go wrong

After the above circumstances and threats, it has become necessary to discuss the Significance Of Financial Education For The Care Leavers.


Children learn money skills that are beneficial in the long-term

To construct a building you need to have a base. Similarly, to have a better financial future, the roots of the children who are leaving care should be strong. The right type of education teaches children about the basic money management skills.
·         How to do budgeting?
·         how to maintain income-outgoing ratio?,
·         How to spend?
·         Where one should not spend much?
Saving is also an important skill as well as habit. The young age is not usually inclined to this part but knowing the benefits and also the threats if they act careless is an eye-opener.


Get to learn to tackle debts and obligations

Lack of knowledge makes care leaver children an easy prey to debt related complications. Once they get into it, the mess keeps on getting worst. Staying educated on how to tackle debts and how to pay them off is a vital lesson of not only of finances but also of life.
This also helps the children understand and find out the promising loan products that can help them get rid of a financial need. For instance, the guaranteed loans that come with assured approval is a saviour while one in any money mess.

These are easily available online on instant approval decision if the applicant has a good repayment capacity. Now, knowing all these factors is a big help for a young person who is trying for the loan approval. Also, they learn to detect the unethical lenders.


Smart Investment Habits Generate

However, this may sound quite bulky for a newly blossomed youth but this is a near future reality too. With time, life is going to be more demanding. At that time, doing nothing with the funds or wasting them in something foolish can invite stress.
Through a proper financial education, the young blood gets to know about the investment products available in the market. They gain the skill to judge the options and then explore as well as exploit them at the right time. Right financial decisions can change weakness into strength. To get mature, one should to choose mature options and investment is one of them.


Small business ideas to become self-dependent

Few souls have inborn quality and courage to start and tackle business. Success and failure are secondary, the most important thing is to have the basic required knowledge. With the help of the right training and skill, many children can start their own small business. There are several ideas that do not demand huge capital money and can be started without much hassle. This can give lifetime independence to many and create many future makers for the nation.
There are numerous business tycoons who started in a very young age with almost no money. However, they became the big names later. With little knowledge and skill, few more masterpieces can be created. It is the responsibility of the society as well as the nation to make due arrangements.


Importance of self-discipline comes in notice

This is the ultimate lesson that every care leaver should learn. It can also be called as the most difficult one as even the mature people with family sometimes fail to practice this. Self-discipline is the actual key of a happy and prosperous life. It can literally do unheard miracles making financial lives strong and promising. All children leaving the care should get to know the benefits and tips of embracing a life with no distractions and wrong habits.


Conclusion

The above reasons explain well that how and why the financial education is necessary for the care leavers. Knowing them can beautifully tailor many lives that may get into severe financial threat if remain ignorant.



Post a Comment

0 Comments