The Importance of Financial Literacy
The type of literacy that is mostly common to people is educational literacy that teaches you how to speak and write and the society we live in constantly insult those who did not go to school they are regarded as ‘’ILLETRATES’’, but apart from being able to speak and write, there are also types of illiteracy we can experience, an example of such is financial illiteracy.
Financial illiteracy means that you have no basic knowledge about your finance at all, in cases like this the financial illiterate makes and spends money just how he gets them. A financial literate is the one who has basic understanding on how to manage his money and since we are not really taught about how we should manage our money in school, we have to get another type of education on finance if we must be sustainable. Unlike the statement made by the majority of people, money is not scarce it however becomes only available to those who know how to play by its rule.
Just like a game, becoming financially free implies that you follow the rules set for the game of finance. If you do not follow the rules, it is certain that you are going to fail in the game. There are people who always believe it is impossible for them to achieve some level of financial stability and surely it becomes very difficult for them to attain it but the case of a person who has gained financial knowledge is clearly different. This implies that the journey to financial freedom and stability begins with financial confidence, it is necessary to have the confidence in the fact that you will be able to hit the financial level you desire.
The Rules of Money.
Financial literacy is important because even if one gets rich through luck, the absence of financial literacy will make it very convenient to lose all the money quick, a financial educated person always behaves in a cool, calm and collected way, he does not just spend his pay check on luxury instead he thinks about multiplying the funds he has.
Getting financial education is now very easy, there are tons of information’s on the internet teaching us on how we should use our money which are free information, but as much as this information’s are free we still have people who never take advantage of learning anything about financial management and there are reasons behind this:
The first reason is: Growing up in a type of environment where getting rich is regarded as an evil act, the child begins to see himself as a person that can never become financially free because he does not want to be evil and that mentality restricts that child for life.
The second reason is: Some people are very scared of success in the first place, they always think about the risk associated with every step of success they want to take, rather than leaping out of their comfort zone, they remain fixed at their level of comfort and confidence and never step out of their shell.
I think in this present age we live in, everybody needs to be financial literacy because it is needed to drive in financially in this world we are live. Not every time schools can offer that financial literacy and I think that is why many people are still missing it
Most times schools do not even teach us how to manage our finance so we have to learn ourselves.
My Posts should explain the New U.S. Monetary System...
August 13.2 Hollywood Time...
Very good publication, I think that being free financially is important, but obviously we must educate ourselves for it, as you say most people are oblivious to this type of information, they simply continue with their lives as most do, spending their salary and again waiting for the next one. Everything is a cycle and I think it is a very difficult mentality to undo.
Once we are used to the lifestyle of earning to spend and waiting for another opportunity, it is highly difficult to undo but stopping the act will be of amazing benefit to us.
Hello @futurekr, I fully agree to implement financial guidance in educational institutions, I believe that in this new decade will be taken into account as part of a person’s sustainable development. There is nothing more effective to be financially free than to effectively manage economic resources through secure investments and not to be buying luxuries disproportionately as they end up being passive.
So long friend good article !
It might be a difficult decision but financial wisdom is one great asset a man should posses.
@tipu curate
Upvoted 👌 (Mana: 8/20) Passive income with @tipU :)
Financial literacy is very vital in this age especially with the restrictions and difficulty that this pandemic has caused to us.
It is more than important friend, it is an added value to anyone who gets it.
@futurekr financial knowledge is very important in the life if we are having good financial knowledge we will try to save and investment in different fields and earn from their also and will be living a happy and good life.
If there was someone that showed me how important this is, the name is "Robert Kiyosaki".
Not only do most people on the planet don't know what Financial literacy means, but the vast majority doesn't even realize that concept is life changing.