Financial Literacy in Our Digital Economy, A Must Have

One thing that most people never received exposure to throughout their entire school experience was financial literacy and the practical knowledge that is more imperative for managing personal finances and businesses. While I did study business and gained exposure to financial concepts in accounting and costing, these courses were mainly abstract in nature. It was then difficult to relate the lessons learned in these courses to real-life situations.

What I think is that education should be more practice-oriented, allowing learners to see how their knowledge applies in the real world and appreciate its value. Right after school, stepping into the job market is the next step. Apart from the skills that secure employment, another crucial aspect is knowledge, mostly needed to manage personal finances, including budgeting, savings, and investing. Additionally, if one wants to consider startup ventures, this knowledge is also crucial. For those with no prior knowledge in these areas, managing hard-earned money can be challenging.

During one's time in school, it would be invaluable to gain knowledge about various aspects of financial literacy. This includes learning to spot legitimate investment opportunities, how to make informed investment decisions, budget effectively, manage financial risks and how to explore business opportunities. These I think are crucial for everyone, regardless of their field, as financial literacy is essential for both personal and professional success.

People do miss out on opportunities due to their lack of knowledge, for example, the fear surrounding cryptocurrencies often stems not just from negative information some people share about but also people's lack of understanding and knowledge regarding its operations, which hinders them from exploring its potential opportunities. Financial literacy is indeed important, especially in today's digital economy where innovative financial instruments like cryptocurrencies are becoming increasingly prevalent.

It's crucial to remember that knowledge about responsible financial management and decision-making are not optional; they are a necessity in today's world where almost everything revolves around money. In every economic situation, some people capitalize on opportunities to build wealth, invest wisely, and plan for the future, while others become victims of the same situation. This was evident during the COVID-19 pandemic. The main issue isn't about how people miss opportunities but how they where they can acquire the right knowledge to be able to spot them. Today, we are surrounded by information and diverse platforms that can be valuable sources for acquiring basic knowledge about finance, investment, and more. We cannot afford to be left behind.