Isn't financial literacy already taught to students? YES
In primary schools, financial literacy education is anchored on the teaching of core moral values. Students are taught basic concepts and values such as delayed gratification, differentiating between needs and wants, spending within our means, thrift and savings.
In secondary schools, students learn about simple financial planning, the responsible use of credit, and are equipped with knowledge of consumer rights, in order to become responsible and discerning consumers.
At the pre-university level, financial literacy is infused in A-Level Economics. Students learn how to weigh costs and benefits, and consider constraints and perspectives in making well-informed decisions.
At the polytechnics and Institute of Technical Education, all Year 1 students will undergo a mandatory financial education module to equip them with basic financial knowledge and practical tools, and cultivate good financial habits.
But it is obvious, NOT EVERY STUDENT internalises the lessons
Young adults age perhaps 17-23 is the segment to address. They are new to the money world.
This is a survey from OCBC financial wellness 2020 on how they might behave.
It was a good stress test because 2020 was hard economically.
This glimpse CLEARLY shows segments of millennials who are in financial trouble.
Who we are targeting is not the blue and the green (which is likely where you and I belong).
The remaining 38% who have some problems in mortgage need help!
Below is further proof that savings rates are bad for this segment.
This 38% is living month to month
Can playing a game really help?
Above is a game developed by SMU.
It uses augmented reality.
I tried it and it could teach savings, loans and budgeting.
Below is another game example called moneyprep.
Premium version is $9.99/month.
What are the chances that someone in our target segment enrolled into SMU?
They probably do not have very good background and a poor social circle.
Secondly, will someone unable to save, who is our target segment, really be able to purchase a paid game let alone be focused enough on the game to master it?
Can financial literacy courses help?
There are paid financial literacy courses. Like this by MoneyTree.
But are they best for children whose parents can afford these courses?
The needy simply would not be radically changed to take action.
And running such courses are hard to scale which will dampen out goals to reach every young adult.
We need to make it FREE
The best method for it to work is to be FREE!
Learning from Bill Gate's toilet program for Durban in South Africa, those who need it the most, can't afford it.
Give a book away for free?
Make the video tutorial and make it free?
Make the stories on podcast free?
It needs to inspire and digital
SO WHAT IS THE ROOT CAUSE OF POOR FINANCIAL LITERACY?
It is multi-faceted which means if we are realistic, some who reject and not be turned on by help.
If not social service centres would have solved all money problems.
Inspiration is a key that MAY unlock someone.
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