※ This video is part of the <Documentary Prime - Education that Changes the Future Part 3: Economy, the Power to Survive Capitalism> broadcast on July 30, 2014. In the capitalist society we live in, money is an essential element for survival. Therefore, people who know how to control and manage money are more likely to be happy. However, what is the reality in South Korea? While the importance of economic education is acknowledged, it is inevitable that parents’ attention will be distant because college entrance exams are the top priority. As a result, South Korea is being followed by the depressing label of being the country with the lowest economic independence rate among people in their 20s. Economic education is not about teaching economic knowledge or how to make money. It is about instilling rational wisdom to properly deal with the numerous economic choices that we will face in our lives. In addition, economic education in childhood is effective for children’s ability to control their emotions, such as impulsive psychology, and helps them acquire rational thinking and morality. What should we teach our children now? Let’s think together about the economic education that our children really need to live in capitalism. Economic education, start with FQ? The core of economic education is teaching understanding and attitude toward money. So one of the things that experts emphasize is FQ. FQ stands for Financial Quotient, which means financial literacy. The higher the FQ, the more rational the choice and impulsive spending can be controlled. So what kind of relationship does this financial literacy have with our children’s actual economic sense? We looked into the FQ of third graders in elementary school and conducted experiments and observations to find out how the children used their allowance. As a result, children with high FQ spent almost twice as long on selecting items as children with average FQ, and they spent much less. Therefore, we can say that economic education is about developing FQ. Early economic education fever in advanced financial countries Recently, as the global economic crisis continues, advanced financial countries are rushing to provide early economic education. In the UK, the government is implementing a system that requires children to join funds and experience financial management until they become adults. In Japan, programs that allow children to experience the real economy by doing business themselves are popular, and in the United States in particular, early economic education was designated as a law in 2004. In a school in California that the production team of <Education that Changes the Future> visited, each student had a job in the classroom. From a messenger in charge of the teacher's errands to a blackboard worker and a librarian... Depending on their job, they receive a reward once a week in class currency called Brainiac. They save this money and buy the items they want through an auction at the end of the school year... However, saving money is not easy. If they don't do their homework or break the rules, they have to pay a fine, and they also have to pay rent for the desks they use every month. In this way, children learn to earn and spend money from a young age, and at the same time, they experience social life and receive natural economic education. When they experience real society in the future, this daily life is expected to be the foundation for proper economic life for children. The beginning of economic education, delayed gratification training This year, the mother of five-year-old twin brothers Seungho and Siho began full-fledged economic education with her children. Experts say that it is best to start economic education before the age of 3, when they can be specifically aware of their own desires. Now is the right time for twin brothers to start economic education. The stubborn twin brothers who would go to the mart and only go home after getting what they wanted. The mother knew that this was the wrong education, but she could not refuse the children’s requests because of her childhood memories of receiving things as compensation for lack of affection. The mother thought that buying the children what they wanted was love. This had a great impact on the twin brothers’ ability to delay gratification. Delayed gratification refers to the ability to delay immediate gratification and control and endure desires in order to obtain greater rewards in the future. In other words, the twin brothers have very low desire control ability. Will the mother who made the decision for the stubborn twin brothers be able to do it well? The power of experience, allowance training Parents in our country are particularly fearful of money. Our traditional sentiment is to treat gold like stone, so parents often taboo children learning about money and being good at money at a young age. The same goes for Su-hyeon’s mother, whom the <Education that Changes the Future> team met. She was afraid that her daughter, a third grader, would waste money, and that she would be robbed of her money by bullies at school… Instead of giving her an allowance, she gave her a gift for reading an English book instead of giving her an allowance. But how effective is economic education without money? A self-directedness test was conducted on children who regularly received an allowance and those who did not. As a result, children who regularly received an allowance scored relatively higher on the self-directedness test. This is because children who regularly receive an allowance have to use a limited amount of money, so they naturally experience the ability to delay gratification and control while planning and using their own money. However, in a capitalist society, the first thing children encounter when they open their eyes to the world is money. If they take care of it like gold, it will be difficult for them to continue living. The power to live in capitalism, economic education… In the <Economy, the power to live in capitalism> section, we will focus on when and how to provide economic education to children, and what additional effects can be gained from economic education. ✔ Program name: Documentary Prime - Education that changes the future Part 3 Economy, the power to survive capitalism ✔ Broadcast date: 2014.07.30 #GolladyeonDocumentary #DocumentaryPrime #Capitalism #Economy #EconomicDocumentary #Democracy #CapitalPrinciple #Money #Income #Consumption #Overconsumption #Expenditure #Savings #Marketing #ExperimentalCamera #Experiment #SocialExperiment #Documentary #EarlyEducation #Children