The reality that children pay ‘1000% a year’ interest

Professor Han Jin-soo | Department of Social Sciences Education, Kyungin National University of Education, Author

In order for students to be responsible citizens and to be able to fulfill their roles in society, they must have the ability and knowledge of money management. Based on this, you should be able to make flawless financial decisions. This is the reason the UK proposed when it made school financial education compulsory in 2014. Knowledge of money and the economy, a positive attitude towards money, and good money management habits will help you achieve lifelong financial health and achieve ‘financial wellness’. Wellness is a compound word of well-being, happiness, and fitness, and refers to a state of health in the body and mind as well as in society.

How long will economic and financial education be delayed?  To learn about money on your own in a social life is like jumping into the water and then learning to swim.  There is nothing more dangerous than this.  Getty Images Bank

How long will economic and financial education be delayed? To learn about money on your own in a social life is like jumping into the water and then learning to swim. There is nothing more dangerous than this. Getty Images Bank

There are many objective reasons to support this. According to a number of studies conducted in the United States, people with high levels of financial capability save more and accumulate more wealth than people with low financial capabilities, so they are better prepared for retirement. Investors with higher levels of economic and financial capabilities are better at diversifying their investments and paying less investment fees. In other words, if you lack financial capacity, your eyes will open and you will lose money. Although individual economic and financial capabilities are essential in life, economic and financial education in Korea is far below expectations. They don’t learn about money either at home or at school. After graduating from school and having a social life, he naturally learns about money and puts it off until later. First of all, I think that English words and mathematical formulas are more urgent. There are several loopholes in this. First of all, like all habits, money-related habits are formed at a young age. Hardened habits are not changed by social life. Economic and financial education should be nurtured from an early age, and desirable habits should be cultivated. Next, it is too late to learn from society. Teenagers also make frequent decisions regarding money as strict financial consumers. spend a lot of money They even borrow money. There are also black hands targeting young people with insufficient economic and financial capabilities. There is a ‘deposit by proxy’ that lends money to teenagers who urgently need money to buy game items or idol goods. They lend tens of thousands of won for a short period of a week or ten days, and in return they receive ‘hard work’. After the due date to repay the money, a ‘tardiness fee’ is added. Labor fees are interest, and late fees are interest overdue. When converted into interest rates, the interest on proxy deposits is over 1000% per annum. They scoff at the legal maximum interest rate, which is tied at 20% per annum. This is a reality that is happening in the smartphones of teenagers now. Should we delay economic and financial education despite this? Being social and learning about money on your own is like jumping into the water and then learning to swim. There is nothing more dangerous than this. Economic and financial capabilities can be acquired through social experience. The problem is that this alone is not enough and it is a back drum. Through active economic and financial education efforts, students must have sufficient competencies before graduating from school. If an individual’s level of economic and financial competency was high, the number of investors who were deceived by the publicity of a safe and high-return derivative product and who was frustrated by a loss after putting a large amount of money in one place would have been greatly reduced. Repeated multiple financial crises could have been avoided. It’s never too late Now is the time to start economic and financial education. Financial wellness doesn’t come for free.



Reference-www.hani.co.kr

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