What is the need to improve the financial literacy of young people

 Financial education of young people contributes to the adoption of competent decisions, minimizes risks, and, thus, can increase the financial security of young people. Poor financial literacy and lack of understanding in the area of ​​personal finance can lead not only to bankruptcy, but also to illiterate retirement planning, vulnerability to financial fraud, excessive debt, and social problems, including depression and other personal problems.

 The statement of John Bryant, Vice President of the US Presidential Council on Financial Literacy, demonstrates very well the importance of financial literacy for the individual and society:

 “Financial culture in today's developed and rapidly changing world has become another vital element in the system of skills and rules of conduct. Financial literacy will allow a person not to depend on circumstances, on the will of other people, the system. An educated person himself will choose those paths in life that will be most attractive to him, creating a material basis for the further development of society.

 The concept of "financial literacy" goes beyond political, geographical, and socio-economic boundaries, and the need for the financial education of the population is growing exponentially. Financial literacy helps young people change their attitude to money, manage it, make them think about the future, plan the needs of their life cycle.

 It must be seen as a constantly changing state of attitudes, knowledge, and skills, influenced by age, family, culture, and even place of residence. It is this approach to this concept that can be found in the national financial literacy standards for schoolchildren and students in the United States. The financial goals of people are individual, they are motivated by the life situation and the socio-economic status of the person.

 The goal of financial education for young people is to deliver understandable, high-quality information “just in time” to every consumer who needs it.    

 Financial literacy is a set of abilities that, although acquired in the process of financial education at school and university, are mastered and tested in practice throughout life.

 In a number of countries, programs and projects to improve the financial literacy of the population are designed to promote the formation of the national philosophy of “self-reliance”, so that every citizen achieves financial independence and maintains it in old age.

 In solving this problem, an extremely accurate understanding and unambiguous interpretation of the concept of “level of financial literacy” is very important, since this allows us to model the national system of financial education, the content of the subject, and teaching methods, i.e. “what to teach” and “how to educate” cannot be understood without a precise definition of the concept of “financial literacy”.

 Financial literacy is inextricably linked with the state since it is it that implements financial legal norms and rules that are imperative. Participants in financial relations do not have the right to change their instructions and are forced to follow them, this is the national identity of financial literacy.

 The key points of the national strategies are the updated definition of financial literacy, the definition of new areas of competence of the population, the clarification of target groups of the population, the survey and assessment of the current state of existing curricula, methods, and educational activities, and, most importantly, the development of further plans for the state, public and private organizations.

 The study of the problem of developing financial education and improving the financial literacy of the population showed that Bangladesh, like many foreign countries, began this process with individual initiatives of public and commercial structures. However, already at this stage, there is an acute need for both control over it and coordination of the efforts of all interested organizations and departments. World practice shows that the sooner the state joins this process, the more successfully the problem is solved.