Importance of Financial Education

Learning to maintain a healthy relationship with money can not only allow us to keep up with the evolution of technology and society, but also It also drives us towards achieving personal goals greater than those aspired to in the last century, being that today the growth is unstoppable. statistical growth of people who turn to developing independent work projects with which to increase the income they perceive. However, all this freedom leads to nothing if it is not duly accompanied by the knowledge that make it possible to guarantee, among other things: 1) administrative and managerial decision-making assertive; 2) the actual recognition of expenses; 3) the progressive reduction of debts, until their total cancellation; and 4) the increase in the profitability of the projects and, therefore, in the profits generated.

Managing finances correctly has become one of the main priorities of the new era, either because of the ease of opportunities for generation of income parallel to the traditional concept of a salary, such as the growing need to adopt a sustained lifestyle through the consumption of goods and services that did not even exist in the past, such as the payment of telephone and internet consumption plans or even the rental of a means of entertainment like

Netflix and the adoption of courses and workshops on-line, with which to keep up to date with their own intellectual capacities and the professional training required to work.

education for money

The relevance of adopting a broad baggage of knowledge on how to manage personal financial affairs is a topic that in recent decades it has had multiple verifications within the fields of personal growth and success, thanks to the diffusion given to it by characters such as R. Kiyosaki, B. Graham, R. Samso, H. Eker, and N. Hill, through his most successful books, facilitating the understanding of an area that used to remain discreetly removed from society as an exclusive preserve of accountants, administrators, economists and big businessmen. However, the influence that these and other authors achieved by having served as a living example of what it means for personal success to undertake a financial education in permanent growth, has served as the basis for the transformation of the entire world economic paradigm, promoting the rise and growth of entrepreneurship as a matter of interest of humanity, ceasing to be the product of the extreme audacity of a few, implying at the same time, the transformation of the mechanisms of work and production under any item.

This phenomenon of ideological transformation on how money was obtained and used also represents a new challenge for the global educational system, since it has become imperative the need to incorporate between the development of soft skills, the formation of values ​​focused on personal stability that allow the development of a more autonomous and independent society from State policies and subsidies, in order to combat poverty as a result of inequality, and the consequences of the increasingly less efficient pension systems and social and labor security, which could not be properly adapted to growth population.

In order to achieve financial equity, educational programs are beginning to receive curricular reformulation proposals, with more and more teachers and professors opening space between their subjects for the teaching of basic knowledge that stimulates, from an early age, the interest in the formation of a financial conscience that allows success and the prosperity of the new generations, while self-taught education has become the key to transforming the paradigm and limiting beliefs in the most adults, who come to accept money as the laborious and limited reward for their outsourced work and not as the entire consequence of all their actions, and even thoughts.

mending the torn pockets

One of the greatest points of impact of financial education is framed in the correct evaluation of the movement that we give to money, transforming expenses into real investments, through strategies ranging from smart buying, eliminating unnecessary leaks and paying down debts that could be had, until the complete transformation of the mentality regarding the adoption of credits, loans and mortgages, thereby eliminating negative habits of indebtedness and waste, assuming instead analysis, control and planning practices focused on the best possible use of resources and the fair price-quality valuation, which also claims the artisanal manufacturing production, bringing as a consequence the relaunch of the activities independent of arts and crafts, making financial education transcend from the personal fact, towards becoming a transformation mechanism comprehensive social.

financial strategies

Among the most notable bases to assume finances with the responsibility that they deserve both at a personal and business level, the following must be assumed:

The personal or business budget: with a permanent and detailed record of all income, expenses, investments and profits estimable according to the activities and periods of time that concern, which allows to take the financial control and the adjustment of the priorities.

A savings system: creating a constant habit with a defined percentage of income that allows the generation of an own and growing economic fund.

Investment plans: assuming specific knowledge and analysis of all benefits and risks, as well as specialized advice and support.

The progressive reduction of debts: prioritizing according to the interests, times and affectations that they cause.

Ongoing training: the financial field is as broad as it is changing, so it must be undertaken with discipline and perseverance if real improvements are to be obtained.

Setting goals: being clear about the objectives and purposes of what you want to do with the financial resources, is a priority step to achieve projects successfully, also allowing the constant evaluation of opportunities and failures, in order to be able to make decisions more and more assertive

The diversification of sources of income: this makes it possible to improve financial stability, expanding the capacity to generate resources with which to reduce costs. economic risks of reliance on a single source, such as when one is exclusively tied to one salary and loses a job for some reason.

Control of expenses: a conscious evaluation of how we use money also allows us to change habits about the consumption and use that is given to other things, assuming a more effective lifestyle and practical.

Retirement planning: developing a personal retirement fund, as well as establishing its usufruct, has become a long-term goal. term with greater importance for current generations, each one having to assume the responsibility of being able to dispose of the necessary resources for their old age.

Professional consultation: despite the existence of an already innumerable amount of materials that allow us to educate ourselves financially, the expert advice from a professional in the specific area that may be needed should always be considered in itself as one of the most important investments that can make the difference between failure due to ignorance and success obtainable with decisions correct.