The rise in the cost of living in Israel in recent years presents many economic challenges for numerous families, and not only for adults. Children, for whom the economic world is both fascinating yet confusing, are also being exposed to a new reality where resources are shrinking and demands are increasing. In this situation, financial education for children is not just important—it is essential. We live in an era where every shekel counts, and every financial decision affects the entire family. 

Children, who don’t always understand the financial burden their parents are experiencing, can learn about the world of money through life experience. This is an opportunity to talk with them about how to cope with the rising cost of living, understand the value of saving, and teach them to design their financial future in a responsible and smart way. In an era of high costs, it is crucial to equip children with the tools to manage the limited resources they have and learn how to use money in a measured and calculated manner. 

 Educational Values in Teaching Financial Management 

Financial education is much more than teaching how to save. It involves imparting values that will shape the economic behavior of the next generation. One of the important examples is the value of responsibility. When children understand the importance of personal responsibility in managing money, they realize that no money is “extra.” Every expense must be calculated, and the necessity of the expenditure is what guides their decisions. 

The second value is planning. In life, as with money, it is important to know how to plan for the long term. Encouraging children to think not only about how to spend their money now, but also how they can use it in the future, is crucial. Long-term planning not only helps them understand money in a practical sense, but also gives them a sense of control over their future. 

Finally, there is the value of creativity. When discussing the cost of living, any creative idea that we can offer to save and optimize is important. In such situations, it is vital to encourage children to think of creative solutions that could ease dealing with the situation, such as seeking additional income opportunities or developing ideas for personal business ventures. 

Learning at Home and at School 

The importance of home guidance in financial education cannot be overstated, but schools are also key partners in imparting this knowledge. Parents can talk with their children about different costs—how the prices of goods fluctuate, how inflation affects the household budget, and why it is important to compare prices before purchasing. Children who understand these concepts at home will know how to apply them outside of the home as well. 

Schools, especially in social studies, economics, and mathematics lessons, can expand the focus on personal budget management, how to make financial decisions, and why it is important to know how to maintain financial discipline. This learning will equip them with the tools to cope with economic challenges in the future. 

Learning from Difficulty: Not Just About Money, but About Mental Resilience 

As important as financial skills are, the ability to deal with difficult situations is just as crucial. The cost of living affects not only our financial situation but also our mental resilience. Teaching children how to cope with economic challenges wisely is an important tool for developing their ability to handle tough situations. Dealing with uncertainty, making informed decisions in difficult situations, and working with limited resources—these are all tools that can help them face life’s challenges, not only financial ones. 

Financial education is not just about how to save money. It’s about how to use money wisely and thoughtfully, how to make the right decisions, how to cope with financial crises, and how to understand the value of every shekel. This is the education we need in an era of rising prices. It is our way of ensuring that our children will not only know how to manage the resources available to them, but will also be responsible, wise, and forward-thinking leaders in the future.