Financial Literacy for Children and Young People

Money is a medium of exchange – it is something everyone is willing to accept in exchange for goods and services.

Although money has taken many forms over time, currently it’s most commonly seen as bills and coins.

Living within your means, regardless of the level of those means. It is critical to take a close look at your financial situation, evaluate your earning and spending habits, and make the necessary adjustments to put yourself on responsible financial footing. 

• Earning
• Spending
• Saving
• Investing
• Budgeting 

People and companies use financial institutions to deposit and borrow money, protect against monetary loss, transfer money and make payments, and invest in different asset classes.

Financial institutions are an integral part of everyday life.  

Financial institutions are such an integral part of everyday life that when major financial institutions go bankrupt, it leads to widespread panic – often requiring the government to intervene.

Credit: The ability of a customer to obtain goods or services before payment, based on the trust that the payment will be made in the future. Credit is typically obtained through a bank or financial institution; credit holders are required to make regular payments toward the accrued balance. 

Credit card:  A thin rectangular card made of plastic or metal issued by a bank or financial services company that allows the cardholder to borrow funds to pay for goods and services to vendors/merchants that accept credit cards as a form of payment. Credit card holders must comply with the condition to pay back the borrowed money, plus applicable interest, as well as any additional agreed-upon charges, either in full by a specified billing date or over time.

A loan is a sum of money that is borrowed from an institution or an individual for a specific purpose with a promise to pay it back. The borrower incurs a debt which has to be paid back with interest and within a given period of time.