How important is financial educations?

How important is financial educations? Financial independence is a dream for many people. And this is no accident! Imagine having enough money to earn a comfortable life, a successful future, and not relying on anyone else for all of that. Let’s go further, have you ever thought about needing a high amount of money and, even without this expense, do you know where to get it from without compromising other expenses?

It seems difficult to achieve this level of independence, but with financial educations, this future can be possible for anyone. And it’s proven! People with financial educations are able to be more conscientious and down-to-earth when it comes to personal budgeting and, for this reason, they live a life without financial worries and handle their money in a way that does not control their actions.

To reach this level, changing the mindset about the use of money is more than important, it is fundamental. Anyone who thinks that ensuring financial independence is just saving a little money in savings or cutting that weekend pizza is wrong. Of course, this can help, but it takes a number of practices to change your financial situation. And that’s when exercising financial educations comes into your life.

What is financial educations and how did it come about?

We start with the concept of education, which is nothing more than the learning process that can transform people’s habits, behaviors, and values ​​from the sharing of information. This goes for any sector of life, including finance.

Financial educations is nothing more than the way a person understands the universe of money and uses the possible tools to deal with it. Realize that this goes beyond the simple act of saving, as it also concerns awareness of opportunities and risks involving this topic.

In practice, the importance of financial educations is to enable a person to better decide what to do with their money. This is where strategies come in: how much money to save? Where to invest? Have greater profitability, liquidity or security? Anyway, all these questions can be easily answered if you have financial educations on your side.

The concept arose from the ENEF (National Strategies for Financial Educations) and the Organization for Economic Cooperation and Development (OECD), which defined the term as “…The process in which individuals improve their understanding of money and information products, training, and guidance. In this sense, the values ​​and skills necessary to become more aware of the opportunities and risks involved are generated. So they can make informed choices.” .

Building assets, having good conditions in the future, honoring the commitment of regular expenses, and avoiding financial problems seem like a dream, but with financial educations, all of this can be worked on and guaranteed. In general, achievement depends on two important exercises, work, which helps to accumulate the necessary or desired resources, and knowledge, which helps to multiply these resources.

How does financial educations work?

To start talking about the importance of financial educations, we need to consider 3 concepts, which are: earning, saving, and investing.

This may seem pretty obvious, but it’s not always something that is part of people’s lives. At least for those who are constantly struggling. The fact is that successful people, in their field of activity, certainly know how these concepts work and get the best out of them.

These people hardly accumulate debts by buying what is beyond their financial means. This is because they have the necessary control over their income, including being able to accurately identify each expense made. And why is this important? Because when someone records their expenses, they can better monitor the movements and thus change an unnecessary expense or eliminate it.

Consequently, it is possible to rethink a whole set of consumption habits to generate savings at the end of the month. By saving, it is possible to invest. And when a person invests, he acts according to his financial prosperity.

With expenses mapped and controlled, it’s time to invest! The practice of investing is the application of your resources in different areas, such as stocks, direct treasury, or financial assets. With it, you make your money work for you and generate even more returns in the future.

What is personal financial educations?

Financial educations, as we have already said here, is a change of mindset in order to enhance financial gains and good management. This concept should be used in all sectors of the market, but mainly in our personal budgets.

Having a personal financial educations is the key to a more peaceful present and a comfortable future. This is because with this practice it is possible to keep all expenses up to date, such as electricity, water, rent, fuel, and supermarket bills, for example, invest in financial activities that contribute to positive long-term results and also guarantee some resources for relaxation, such as a trip, cinema, restaurant, etc. Everyone deserves a break from worries, right?! And with financial education, it is possible to do this without fear of money not giving.

There are many benefits when exercising financial educations in your personal daily life, but the main one is the quality of life that it can bring to your life and that of your entire family.

Financial educations for young people

If in adult life, talking about – and doing – financial planning is already a great challenge, when young it is even greater. This is because it is during this period that independence arrives and expenses begin to be the responsibility of the parents, and no longer of the parents.

It is common to find people who started to get into debt in their youth. Therefore, learning to deal with money at that time is very important, so it is possible to manage resources efficiently from an early age, avoid indebtedness in adult life, and make financial returns come sooner than expected.

In general, financial education for young people goes far beyond the desire to get rich, but it is also a step against premature over-indebtedness, a recurring factor these days.

What is financial education in schools?

We are already convinced that financial education is important from a very early age, only in this way is it possible to create and exercise the habit of analyzing personal finances before creating debts that end up becoming a snowball. And, why not start learning as a child?! In addition to knowing about the country’s monetary system and financial mathematics, very complex subjects that require time to understand, financial education in schools can contribute a lot to child development.

Why teach about finance in schools?

Financial education in schools goes far beyond teaching children and adolescents to organize themselves financially. Scholars reinforce that through this practice, students learn and develop behavioral traits that can make a difference in the future. Among them are:

  • Emotional self-control;
  • Subject;
  • Organization and planning;
  • Self-knowledge;
  • Management and financial intelligence;
  • Analytical view.

For these reasons, encouraging the learning of finance in schools is essential. In addition to ensuring a reduction in indebtedness from an early age, it can be a major factor in combating social inequality and also contribute to behavioral evolution.

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