Financial literacy is the ability of individuals to adequately comprehend and make informed decisions with regards to their financial affairs in areas including purchases, investments, savings and borrowing. Financial literacy plays an important role in the development of financial consciousness and saving habits. In countries with increased financial literacy, savings and investments are relatively higher.
Savings is one of the main factors of economic growth and development of a country. Savings can be increased is by introducing financial literacy to children at an early age. It is necessary to teach children how to earn and save money as well as the consumption habits that need to be avoided. Behaviors developed as a result of choices shaped in childhood play a role in guiding the individual in later ages. Children who receive education in personal finance will play an important role in the development of society. A study conducted by the Financial Literacy and Access Association in Turkey identifies the 18-24 age group as the “Carefree Youth” characterized by high-risk takers without any money disciplined. The Carefree youth constitute 19% of the population. While it is important to instill discipline in this group, increasing financial literacy rates of children provides a sure way of preventing the emergence of new carefree groups. This study intends to provide information on the contents, and the concepts and topics on the nature of financial literacy and personal finance education that should be given to children, as well as asses the present situation in Turkey.
Anahtar Kelimeler: Financial Literacy, Children and Finance, Savings, Spending, Investing