In our daily lives, we constantly make economic decisions. Spend, save, invest… What is the right choice? Are you managing your money well?
Suddenly, financial education becomes an essential tool in our lives. A good financial education allows us to take advantage of key opportunities in our lives and helps us make the right decisions.
Although disciplines such as Economics are gaining weight in educational programs, there is still a long way to go in the field of financial education.
Everyday life poses challenges to our personal finances: applying for a mortgage, investing in the stock market, saving, or protecting ourselves against possible scams. This is where financial education can be a compass and even a lifesaver.
Therefore, it is important to acquire a financial culture from an early age. This knowledge will help us make economic decisions, protect ourselves from risks, and better manage our personal finances.
And if you want to discover more information to continue training in financial education, visit this site where you will find articles, guides, advice, books, and courses, with everything you need about financial education.
The importance of a good starting point
From childhood, it is important to awaken curiosity in the little ones about how to get money, how to manage it, and what the consequences are of making certain decisions.
In this sense, the little ones should know how to manage their pay and tips. In this way, the first notions about what spending and saving entail will be learned.
Managing your money correctly also means being a responsible consumer. Therefore, the little ones will begin to understand what consumerism and a world full of advertising that never stops generating needs in consumers means.
This consumerism and a small budget to manage lead young people to consider what their true needs are, how much they can spend, and when it is time to save.
What notions and concepts does financial education bring to everyday life?
Throughout our lives, we will be forced to manage a budget, trying to find a balance between the expenses we need to satisfy our needs and the savings we will require for possible emergencies or important investments.
To do this, planning will be necessary, taking into account the period and realistic personal objectives in line with our income level.
Likewise, financial education not only helps us plan our lives but also allows us to calculate the interest that the bank will provide us or helps us anticipate the taxes that we will have to deduct from our payroll.
On the other hand, financial education implies essential reflection before choosing. This means evaluating the investment alternatives, informing ourselves thoroughly, and asking ourselves the appropriate questions before contracting a pension plan or entering an investment fund.
In other words, financial education is omnipresent, affecting us in all aspects of life. It helps us to enjoy our financial resources in the present, while thinking about the needs of tomorrow, thinking about saving for a future retirement.
What advantages does financial education provide?
By being aware of our income and expenses, financial education allows us to organize our lives and helps us set realistic goals. All of this translates into more efficient management of family assets and, therefore, greater family, social and economic well-being.
Saving is a key element of financial education. Thus, with a reasonable vision of the balance between spending and savings, it is possible to satisfy current consumption without compromising the future. Thanks to these efficient savings, there is a margin of safety for years to come.
Another quite common problem in the current context is scams, especially in the complex world of the internet. Well, a good financial culture helps us discern an honest offer from a fraud. Those who possess financial knowledge can discern the deception of an opportunity.
Beyond scams, a key concept in economics is efficiency. Thus, we could see the economy as the sum of numerous decisions that individuals make. This means that, if we have responsible and thoughtful consumers, we will have a much more efficient economy globally. This assumes that a society of efficient consumers brings with it general well-being.
It is clear that investors with financial culture are efficient investors, they result in more efficient markets. This way of acting brings with it not only greater confidence at an individual level but also generalized confidence in the economy.
We must not forget a big question: Is it good to go into debt? When and to what extent can I go into debt? Once again, financial education will once again play a determining role. Thanks to it, we will be able to calculate the interest on the mortgage, our ability to meet our debts, and what our debt limit will be.
How can I improve my financial culture to improve my life?
The most direct and common way to improve your financial knowledge is to go to traditional institutions. In other words, you can study Economics and Business Administration at colleges and universities or enroll in courses.
At buzzbongo, we have dedicated ourselves to democratizing financial education, not only providing great economic articles but also analyzing current economic events and making them available to everyone. As part of this great effort, we also offer courses that will help you learn the fundamentals of economics and that will help you make key decisions when making your investments.
An extraordinary source of knowledge is books. Economists and investors collect their experiences in magnificent works. Their experience can show you the way or at least help you ask the right questions.
Reading is a great way to acquire knowledge and not only through books. Being aware of current economic events helps us understand the context in which we find ourselves. Hence, the economic press, blogs, and specialized economic websites are a tool of great value. In their analyses, economists break down the economic keys, propose investment strategies, warn about possible scams, and help us build an overall picture of finances.
Non-conventional media are not negligible. We are talking about podcasts, YouTube channels, and social networks. It is a direct, dynamic, and close approach to economics and finance.
Don’t forget that the good progress of the world economy necessarily depends on good financial education. Therefore, it is necessary to take into account what it means to manage a personal budget. Remember that if, as a society, we manage our finances efficiently, we will achieve well-being and economic prosperity worldwide.
