Starting this school year, a new subject is being introduced for third-grade students in gymnasiums. We are talking about financial literacy. Why is it needed and how will the classes be held?
Last week, the Cabinet of Ministers approved the introduction of a financial literacy lesson for third-grade gymnasium students. Every year, teenagers will take six blocks of the subject dedicated to different financial aspects.
Education Minister Athena Mikhailidou says that the materials for the lessons are already ready. They were developed on the basis of an already existing government program to increase public awareness in financial matters with the help of staff from universities in Cyprus.
In subsequent years, it is planned to evaluate the effectiveness of the program and expand it. The Minister of Education noted that children should begin studying finance topics from the early grades, since financial literacy is a basic skill that will help children throughout life.
The Securities and Exchange Commission welcomed the introduction of the new subject, which the organization has long proposed to include in the school curriculum. Elena Karkoti, responsible for financial education, said children and teenagers showed great interest and asked questions in SEC lectures in schools.
Elena Karkoti explains that children of different ages can gradually learn important money management skills. For example, how to create a simple budget, compare income with expenses, why it is important to have a reserve, how to save money. And slightly more complex concepts - the relationship between risk and return, understanding the investment environment and the need to diversify investments. Children also need to learn that get-rich-quick promises don't work and how to spot scams online and on social media.
Eleni Karkoti notes that parents can do a lot on their part to help their children understand finances. They can openly discuss planning a vacation or some expensive purchase and show the reasoning behind such large expenses. Parents who give their children pocket money can also explain how to use it wisely, how to save for an expensive purchase, and set goals. When shopping, it is useful to discuss prices with your children and compare the cost of products. Older children can explore topics about taxes, family budgeting, online shopping, credit, economics and investing.
The Securities and Exchange Commission also produces educational material for adults who want to understand financial issues, read this link.
The text was prepared based on materials from CBN and Cyprus Times
On topic
An EU survey showed a low level of knowledge of financial concepts among the Cypriot population. The situation is the same in Greece, Portugal, Romania and Bulgaria: most of the residents do not understand financial terms. Read more.
Read 320
