And a recent study of the relationship between financial behavior and financial outcomes revealed that comprehension of the general principles of sound financial behavior, such as budgeting and saving, is actually more beneficial in producing successful financial results over time than specific and detailed information on financial transactions. These findings underscore, in particular, the importance of beginning the learning process as early as possible.
Indeed, in many respects, improving basic financial education at the elementary and secondary school level is essential to providing a foundation for financial literacy that can help prevent younger people from making poor financial decisions that can take years to overcome. For example, through a fundamental understanding of the mathematics of compounding interest, one can appreciate the cumulative benefit of routine saving.