Financial ABC: A Handbook for Educators and Teachers of Independent Youth and Guardians of Independence. Part II.

We are pleased to recommend the second part of the textbook “Financial ABC: A Handbook for Educators and Teachers of Independent Youth and Guardians of Independence.” This textbook is an auxiliary material for classes on selected financial aspects of young people becoming independent. This edition is dedicated to the following topics:

• Credits and loans
• Shadow banking
• Debt and debt recovery

The introductory and overarching topic is assertiveness. The first chapter of the textbook presents the most important topics related to assertive behavior, emphasizing that it is worth cultivating not only in relation to finances. An assertive attitude is associated with self-respect and building self-esteem, which are crucial for young people gaining independence.

In the context of finances, assertiveness helps in making thoughtful and responsible decisions at the threshold of adulthood. How young people manage their finances at this critical moment in their lives significantly impacts their well-being and future capital building.

Entering adulthood is a time to develop key competencies in personal finance management. These include the ability to make decisions about short- and long-term financial commitments, including taking out credits and loans. This topic is covered in the second chapter of the textbook.

The third chapter discusses the most important issues related to the functioning of the so-called shadow banking (gray banking), primarily non-bank financial institutions offering quick and high-interest loans. Taking on such debts, especially to pay off other debts, can lead to a debt spiral. Prevention methods, the effects of this phenomenon, and ways to get out of the debt spiral are addressed in the fourth and final chapter of the textbook.

Each chapter contains basic information on the listed topics and ends with a set of exercises for use in classes (including the purpose of the exercise, duration, and necessary aids and materials). As in the first part of the textbook, issues regulated by sometimes quite complex legal provisions are presented in a simple, accessible way. Therefore, there are some simplifications. For this reason, the textbook should not be treated as a source of information on legal regulations concerning a given issue.

Using the textbook, one can conduct a lesson dedicated to a specific topic or enrich other classes. However, it is worth having an initial conversation with young people to assess their knowledge level on the subject and adjust the language used during classes to facilitate understanding of the discussed issues. This conversation will also help prepare for countering statements such as “there’s no point in saving if you earn little” or “why plan anything when the future is uncertain.”

The second part of the textbook, like the first, is primarily aimed at educators, teachers, and guardians of independence but will undoubtedly also be useful for others. The publication allows for quick and efficient preparation for classes – some exercises, infographics, or information can be copied and distributed to participants.