The Need For Financial Education
Looking around our society, we discover that there's a high level of financial illiteracy in our world today. Hence, the reason for a lot of money/ wealth mismanagements, unnecessary debts, bankruptcy and other financial problems people are currently experiencing. Thus, there's an urgent need for an intentional and adequate financial education.
We need to know that without proper financial education, these financial crisis will continue to prevail. It's more saddening that our (some) governments lack this in-depth knowledge about money and everything finance. Because if they do have the knowledge, then there won't be these many debts incurred by many governments. The issue of inflation would have been controlled and handled. Their lack of proper financial education is of gross concern because it affects every person across all levels even to the grassroot level and high class individuals. But we won't be talking about the governments today rather individuals.
The Genesis of the Problem
Growing up as a child, I can't recall a particular day my parents sat me down and taught me about the concept of money and how money works. They never intentionally taught me about finance. All they did was give out cash each time I made a request. So, I grew up believing that money is quite easy to come by but we all know that's not true. Yes, making money can be easy when you do the right things (like providing the needed solutions and solving problems) but generally, wealth creation isn't an easy road to go down. If it were that easy and simple to create wealth then everyone would be billionaires. But you see that we even have more poor people than rich persons.
This is to tell us that there's a price to pay for wealth creation and one of such prices is being equipped with the right financial knowledge. Having acquired the knowledge, you then apply . It might interest you to know that the application of knowledge is as important as the knowledge itself. Knowledge becomes useless when it's not being put into action. To some extent, this is what differentiates the rich from the poor.
Moving forward and keeping my parents aside, I come down to my high school and college days, there has been no single course that indepthly taught about money and finance. The few ones I had were just on-the-surface discussions.
So, what are my implying?
Key Takeaways
Everyone has a role to play in the dissemination of proper financial education. Beginning from parents, elder siblings, school teachers, pastors, co-workers, friends to mentors etc, each of us with a higher degree of knowledge about finance should do well to impact same to those who lack it.
As a parent, make it a point of duty to teach your children about the concepts of money and wealth creation except you want your wards to just be average citizens. You'd agree with me that this is very necessary and vital. As a friend or mentor, do well to make the subject of money a part of your discussions.
Coming down to our schools, it is important that finance and money courses be introduced as part of the curriculum. This will be far more impactful, useful and appreciated than some of the irrelevant, outdated and non-applicable subjects/ topics taught in schools. People need to have the right knowledge and mindset about money so that, they can avoid many financial crises.
It's easier to teach a young man than to teach an old person. In essence, the best time to start educating your children about money is when they are still young. It becomes a bigger problem when they grow up learning the wrong concepts. As you very well know, unlearning a wrong thing and relearning the right thing is more tasking.
Why Financial Education?
Like aforestated, there are many poor persons in the world today. Also, there are numerous financial crises in our society of late. It might not be affecting you directly but indirectly these financial problems in the world affects you which is why everyone should be concerned.
Understanding Spending, Saving and Investing
The understanding of these three is very key to anyone who wants to gain financial independence or some level of financial satisfaction. Speaking of satisfaction, no one has ever made enough money. In fact, the more you make the more you want to make. People need to be taught and educated about the roles of spending, saving and investing in creating wealth.
Financial education is necessary for knowing when and how to spend. Also, it helps one to know what to save, how to save and where to save. Equally, it aids people in making the right investments and at the right time.
Sadly, many spend carelessly and on liabilities. Some only remember investing and/or saving after they might have spent already. Wealth has never been created through spending or saving but rather through investing.
Debts and Borrowing: This is another major problem encountered by a lot of persons. However, this is where financial education comes in handy. Borrowing isn't bad until it turns to become a lasting debt. Also, borrowing isn't bad until it is being done for the wrong reasons or purpose.
Everyone has borrowed money before at some points or the other, including rich persons. The disparity between two people who borrow is the purpose of the borrowing. People borrow for many reasons but borrowing and incurring debts should not be a lifestyle. Why would you borrow to spend on liabilities? Why borrow to impress? Why borrow to live a life you cannot comfortably attain? That's a different level of financial. If you must borrow, borrow for good reasons. Intelligent persons borrow money for investing knowing fully well, it will yield profits. Some borrow during market or stock crashes to invest; now that's wisdom.
Debt is a very terrible thing. It eats into your future whereas you're still in the present. So, because the money comes, it has already been spent. You see that these sect of persons live a life of continuous borrowing. With the right financial, this kind of lifestyle will be avoided. I mean no one wants to live such a life.
On the whole, everything in life has a principle and once you follow these principles, you are bound to get good results. Wealth creation and/or financial success has its own unique principles. It's important that we know these principles and also apply it. This then makes financial education a necessity.
Read Also: How To Chart A New Course For Your Finances in 2022
Posted Using LeoFinance Beta
Without a financial education capturing todays trends and crypto opportunities, we will remain anchored in a corupt traditional system.
Well said!
The right information is needed in order to grab and maximize the abounding opportunities in the space. It is then incumbent of individuals seeking to escape from the hands of the corrupt traditional system to go for this knowledge.
Posted Using LeoFinance Beta
You are right. The reason we arent sat down and taught that is because our parents didnt know either. They followed simply what they were taught be society which is how to get a job, earn an income, and give in to their desires, placed there by advertisers.
I can assure you those financial conversations took place within the households of the truly wealthy. They teach their kids about investing, finance, and how to manage money/assets.
The rest of us basically are trained to get a job.
Posted Using LeoFinance Beta
Very true! You can only teach what you know. You can't give what you don't have.
This is exactly what Robert Kiyosaki illustrates in his book, Rich Dad, Poor Dad. There's a difference in the way children are brought up. I was trained to go to school, get good grades and look for a job. Luckily for me, I detailed and found Hive and crypto.
I look forward to training my kids in a better way
Posted Using LeoFinance Beta
That is true. There is a lot to be said for the environment we were reared in.
For the last few decades, in the US, the mantra has buy what you want, you deserve it. Of course, this goes against sound financial principles but people ignore that fact.
Sad but that is why most end up financially enslaved. They create more debt, further beholding them to the lenders, meaning they have to work longer and harder just to stay in the same place.
Posted Using LeoFinance Beta
Pathetic situation indeed!
Money is a very critical component of our existence. Thus, it becomes imperative that people learn the right principles and equally be intentionally about their financial lives.
Financial slavery is terrible and should be avoided by all means.
Posted Using LeoFinance Beta
Money is the tool that leads to wealth. Few seem to realize this. Business is what wealth it. That is why countries that try to create money without the business tend to get nowhere.
We need to develop money for ourselves so we can engage in wealth building activities. That is what is overlooked by the masses.
Posted Using LeoFinance Beta
Wow.
Thanks for this light. It hits very differently
you are right things need to be changed, this will be more productive people and some where in the line crypto should be taught in depth in schools and even universities is that many look up and start thinking of ways to bring ideas to this spaces. I believe crypto can build up Legends too.
Posted Using LeoFinance Beta
I would say we need to ignore the schools. There is enough information out there that people can educate themselves.
In truth, if you have access to the Internet, there is no excuse for not having this knowledge. A simple web search will reveal a ton of pages that share ideas about financial education and matters such as risk management, investing, budgeting, etc...
Posted Using LeoFinance Beta
That's surly a point, I thought as much, but if I was a little bit educated about BTC I will have had at least 10 day, my teach who knew this keep it to him self and didn't show us any thing, in fact always say it is not part of school stuffs and he killed my zeal for the knowledge of it. That's I was a bit emotional about this.
Learning from others is the best way to do things. That means turning to the people who are actually doing what we want to achieve.
For example, if I want to be a bricklayer, probably the best teacher is not in a classroom but someone who does that for a living.
Financial education is all over the Internet, with people who are actually doing what they profess. Keep in mind, most teachers are barely making it. They do not know how to accumulate wealth.
Those who are doing it do.
Posted Using LeoFinance Beta
Yeah, this is true. At the end, my teacher didn't keep any money at the end. He sold it and now he is still at square 1.
Apt
You have a point there. It will be quite interesting to see these things being taught indepthly in schools.
Financial education is very important in life because is that will say,if you will be rich or if you will be poor. Financial education is something we need to start learning from cradle. Thanks for the information.
Posted Using LeoFinance Beta
People need to learn so they can keep what they get. It is too easy to let all the money that enters our hands slip through. This is something that many overlook.
Posted Using LeoFinance Beta
Your words motivate me
Posted Using LeoFinance Beta
Peradventure, someone didn't learn from his early days, it is never too late to learn. We have resources everywhere on the internet that can guide.
Yes bro
Posted Using LeoFinance Beta
I learned most of my financial education in my 20s, by making all the mistakes. Over spending, bad budgeting, unrealistic expectations, etc.
Yet, I still don't know I could fully educate others on finances, it's such a huge topic.
Posted Using LeoFinance Beta
The best way to teach is by sharing your experiences, I think.
Simply tell people the mistakes you made in your early days and the impact it had on your finances.
Equally, share how you changed, how you did better and the present impact of the decision on your finances.
Posted Using LeoFinance Beta
I can give a recommendation to many students about the best place to go if you need help with writing papers. I already know from experience that you need to study information about different companies first, and then make a decision. Here, for example, I click here to find out more about the company where you can order essays and other written works. That's how I immediately learned about the downsides, that there can be plagiarism and formatting errors in essays. This should not be allowed, because it's good that I at least found out everything in advance.
Posted Using LeoFinance Beta