In 2023, a TikTok trend called “cash stuffing” went viral. Teenagers were stuffing envelopes with cash to budget their weekly expenses, and racking millions of views while doing it. But let’s be honest: most were copying a trend without knowing why it mattered.
The irony? A viral internet challenge did more to spark interest in saving than most schools ever have.
A 2022 global survey revealed that across the G20 countries, only 33% of adults are financially literate. This means that the numbers are even lower among young people.
That’s not just a gap; it’s a crisis. Financial literacy isn’t about knowing fancy terms or doing complex math. It’s about being able to earn, spend, save, borrow, and invest money with confidence. It’s about building a life with fewer regrets and more choices.
Here's why it should start early:
Habits Form Early
Children don’t learn about money by sitting through a lecture. They learn by watching how their parents talk about money, how adults behave in shops, and how spending feels versus saving. Studies state that by age seven, their basic ideas about money are already forming. The problem? Most kids are told, “Money’s for grown-ups.” But even simple habits, like dividing pocket money into save, spend, and share jars, can shape how they think about money for life. In India, school-led finance clubs have shown promising results: kids who regularly save even tiny amounts become more confident and thoughtful with money.
The Cost of One Bad Move
Money mistakes aren’t always fixable. A loan taken too young, a credit card paid too late, a scam that wipes out savings; these leave real marks. With easy access to digital banking, credit cards, and buy-now-pay-later schemes, young people are being thrown into financial decisions before they understand the risks.
India's credit card debt has significantly increased to ₹2.9 lakh crores in the last four years. This concerning surge is accompanied by a rise in credit card defaults, particularly among millennials and Gen Z, who are reportedly maxing out their cards and failing to repay.
But there’s good news here too. Major meta-analyses found that even short financial education programs (like a semester) helped students develop positive approaches to money.
Closing the Gap
Here's the hard truth: not every child gets the same head start. Kids from wealthier or more educated families often grow up hearing about terms like credit scores, investments, or how to manage bills. Others do not, and they pay for it later. Researchers call this the “financial capability gap.”
Financial education in schools can help level the playing field. Countries like New Zealand already include personal finance in their national curriculum, making sure every child, regardless of their background, learns the same essential skills. India is also making strides in empowering students financially. The National Education Policy (NEP) 2020 offers an excellent opportunity to integrate financial literacy into existing curricula—especially through life skills, math, and social science classes.
Economic literacy also helps with gender equity. Globally, women tend to report lower confidence in money matters. But when girls are taught personal finance from the same age as boys, that confidence gap narrows. Early education doesn’t just empower individuals. It lifts entire communities.
Demands of a Digital World
Today’s teens can invest in crypto, buy stocks, or apply for credit, without ever leaving their phones. They’re digital natives but are they financially savvy?
In 2021, the OECD warned that young people are especially vulnerable to digital financial risks, from identity theft to predatory lending. The pandemic only made it worse, with online financial scams skyrocketing. If we aren’t preparing the youth to protect themselves in a digital economy, we’re leaving them defenseless.
Some countries are catching on. Singapore, for example, now teaches “FinTech literacy” in high schools. They cover topics like digital safety and online investing. Hence, the digital revolution makes early education non-negotiable.
First Steps
Teaching financial literacy early doesn’t require complex theories or advanced tools. It starts with small, consistent steps:
● Ages 5 to 10: Introducing money through piggy banks and games, budgeting classroom resources, or saving for a trip.
● Ages 11 to 14: Discussing needs versus wants, banking basics, and tracking monthly spending.
● Ages 15 to 18: Learning about credit, student loans, online safety, and how to save long-term.
In the U.S., 28 states now require some form of personal finance education in high school. Countries like the Netherlands and France have added financial literacy benchmarks across K-12 levels. Parents can help too. Talking to kids about real-life expenses, like grocery budgets or mobile plans, makes money feel real, not abstract. Apps today make it easy for even a 6-year-old to learn how to budget in fun, engaging ways.
Conclusion
Today’s kids are growing up in a world where money moves faster than ever. Credit is instant. Mistakes are expensive. And too often, we expect them to figure it all out without help.
Financial literacy isn’t a bonus skill for the rich. It’s a life skill. And if we want future generations to thrive, not just survive, it has to start early. We teach kids to read so they can understand the world. We must teach them about money so they can shape it.
