Financial education is the process financial consumers or investors improve their understanding of financial products and concepts. Simply put it is getting knowledge about money. There seems to be little to nothing at all on financial education, precisely formal education on money in the part of the world I come from. Even in advanced countries such as the USA, data show two-thirds of the population have little financial education.
But money if not the most important in the world surely affects anything that is important. So why is financial education or money not taught as a subject in schools? Is it a deliberate effort? Maybe yes, maybe no. We are not taught how to make money, well entrepreneurship has been on the rise lately and that’s good. The common notion is go to school, get a high paying job and then be successful. Even with that we are not taught how to use money properly or wisely, with many young people under the illusion that simply earning a lot of money means that you’ll never be in any debt, along with a general unwillingness when it comes to making sacrifices for the sake of budgeting.
The situation doesn’t seem to get better as it is not being incorporated in educational curricular. The way forward? Get yourself equipped with knowledge about money and the it’s modern concepts. There are tons of available materials available to get you financially educated.
What’s The Importance of Financial Education?
The research backed benefits of financial education include having less debt, being able to manage household finances more skillfully, making well-informed investment decisions that will produce higher personal net worth and a myriad of other habits that promote a happier life. Talking about investment, stay tuned as I bring you tidbits. Namaste.