Importance Of Financial Education

1004 Words5 Pages
The importance of Understanding financial education, developing skills and management for the success in commercial world today. Financial education in simple form can defined as the process by which financial consumers/investors improve their understanding of financial products and concepts through information and accepting instructions about financial management. However, many people today are growing up in a complex financial world requiring them to make difficult decisions for the future without proper level of financial literacy, example failure to understand the risk, to plan ahead, to save for rainy days and compare financial difference when buying products. Lately integrated in the school systems, financial education is aimed…show more content…
Not only it benefits an individual but country as whole, this is possible when people make good well informed decisions, reduce debts, work towards savings and budgeting and value money which will lead to lift the problems of poverty in the country. Parents and teachers play a critical role in addressing the issues of money management to children from young age, teaching the need to save and what can be done with that savings. To illustrate, a year four student learns to save money by having a moneybox which he at the end of the year adds up to buy his school stationeries rather than spending it in school…show more content…
When people have low levels of financial literacy, they often make unproductive financial decisions. Consumers spend their money in suboptimal ways, borrow more than savings, and hence miss opportunities for investing. Through communicating the knowledge, taking advice about financial problems, developing skills, and attitudes associated with money management, financial education can offer communities to be successful in commercial world by using means to use their scarce financial resources more effectively and efficiently. It will enable people to choose the financial services and products that best meet their needs. One needs to plan of the future consequences namely illness, education for upcoming generation, marriage and other problems that may come up. Likewise, if one starts to save money from now there will not be any financial difficulty in future. This all will contribute people to be wise when handling finance resulting to lift the poverty line for the
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