Economics for children

You certainly know the value of money!

Your kids think they know it too.

They also know how they have "easy" access to your money.

Most parents buy clothes and shoes with well known brands for their children in order to show they care for them. Sometimes they can't afford that and get into debt.

Parents are of course responsible for this and have to cope with the consequences. Later when the children form their own family they base the future on the things they have learned at home and at school. They have to make their own budget and manage incoming money with the obligations of spending. A rather large number of those newcomers to the economy can't handle this and rely on their parents to plug the financial holes.

Schools as well as parents have their own budget and manage money day in, day out.

This acquired economic knowledge however is not easily available for children. Knowledge about the value of money is essential for participating in the economic circus. So where would your children get the knowledge?

In Malta "economics" or "accounts" are disciplines of choice. Your children might be leaving school without ever being exposed to knowledge about money. They enter the real world and will compete not only with their friends and colleagues but with the "international labour market" in Malta. Oh yes, we do have an international labour market in Malta. Companies get more and more applications from young "foreign" people willing to earn where Maltese abilities are lacking.

If Malta wants its pupils to participate and compete in the real world and match the performance of students of the other European Union countries, measuring the quality of education in comparison with other countries is the best way.

In this competition with other countries the understanding of economics is essential.

This starts at home as well as at school with managing their own money. Schools have to teach children how to handle their own financial and economic affairs.

Most of what children learn about managing money comes from their parents, and we all hope that our offspring will grow up to be financially responsible adults.

Allowances give kids the chance to manage cash "hands on", a chance to practice how to save regularly and plan their spending. Teaching at school about the economics they have to face and deal with in real life is a must.

Schools should show the effects of inflation. Schools should demonstrate why and how prices have changed over the years. Economics - in Malta at schools seen as subject of choice and not a compulsory subject - is essential for participation in the real world!

It is time to provide our children with the knowledge and understanding they will need when leaving school and entering the real world.