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Essay on importance of financial literacy
Importance of financial literacy essay
Importance of ‘financial literacy’ among teachers, staff, parents and students
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Personal finance is so important for all times in your life. It 's especially important in your twenties because while the mistakes you make are ones you can recover from, you don 't want to spend your 30s and 40s fixing the screw-ups from your 20s. As a bride-to-be or a young wife, family planning and wedding planning can be pretty costly. Don 't allow the frenzy and excitement of either make you lose sight of your finances. Consider these 15 personal finance moves that are good to make before you turn 30.
1. Maintain a checking and savings account.
Be intentional about opening checking and savings accounts. Checking accounts are vital because you 'll need them for transactions, managing money and keeping it safe. Savings accounts are vital
It 's a safe way to invest in a few different avenues at once. Do it through a trusted finance company to manage your money safely and wisely. In your twenties, it 's also a good idea to try one or two aggressive investment opportunities with stocks. The older you get, the less aggressive and risky your investments should be.
9. Take a money management course.
Whether it 's through a local community college, local church or an online class, a money management course is excellent for helping you learn how to effectively kill debt, manage money and build wealth. Try to do this on a routine basis like once every other year.
10. Actively put money into the savings account.
It 's one thing to have a savings account. It 's another thing to actually put money into the account. A great practice for building your savings involves putting 10% of each paycheck into the savings account. If you treat this 10% like a bill, you 're more likely to build up a solid savings cushion.
11. Create an emergency fund.
While it 's nice to think positively about the future, one thing is definite: you will run into a crisis or emergency. Knowing this, it is very important to save for emergencies. Put away a few thousand dollars that are untouchable and are only to be used in the state of dire emergency.
12. Maintain finance
You might be tempted to dip into your retirement fund for a major purchase, find the will to resist. You’ll pay extra fees and taxes, and you are robbing your future self. If you leave it alone, your money will continue to grow year after year. Your gains can be reinvested and you’ll earn more than you would have with just a small chunk of
Taking a financial literacy class would help students learn how to stay out of debt. According to the article, “Finance Course Prompts Debate” by Gina Davis, the class would “cover concepts such as money management, consumer rights, and responsibilities,
There are many different ways to save money and there are different things to save for. A savings plan for an immediate want is apparently different than a savings strategy for retirement. One may choose to select stocks, bonds, or mutual funds for a savings strategy, however, my personal choice is to invest in bonds first, then mutual funds.
Making improvements on our financial literacy results in a wave of impacts on our economy and the financial health in our society because of responisble behiavior with our finances. These modifications to our behavior are neccesary because it let's us address primary cultural problems, for example over-credits on your purchases, mortgages possibly resulting in debt, dealing with expectations on inflation and also planning on your retirement.
While it is very important for young individuals to start to save and invest for their retirement, there are aspects that they should consider before jumping into investing into securities. Those subjects are cash, enough insurance, should you buy a home, how secure is your job, how much risk can you handle, equities are risky, get started, do everything, be flexible, and can you save and invest too much. These ten aspects should be looked at, analyzed, and taken into very critical thought before saving and investing into securities.
In conclusion, the best way to manage your money is to keep a budget and record all your transaction to see where your money is going. Living with a budget isn’t the easiest thing in the world, but it can be a great alternative to worrying about how you are going to pay for your expenses. Budgeting allows you to create a spending plan for your money; it ensures that you will always have money for the things that are important to you. Following a budget will also keep you out of debt. If you don’t balance your budget and spend more than you make, you will have financial problems. Many people don’t realize that they spend more than they earn and slowly sink deeper into debt every year.
Managing personal finances is an important skill to acquire. However, no where in school is this subject taught. As a result of a lack of preparation, our society is subject to a high percentage of people who lack financial success. Those who are successful at managing their personal finances will find that they are successful in many other areas as well. To learn how to manage personal finances there are books and web sites that provide a step by step guide to successfully managing personal finances. Those who lack financial success often possess many of the same traits.
Developing a thorough financial plan is a process that comprises a comprehensive analysis of a particular individual’s financial position and their long-term commitment to apply and observe the set financial plan through one’s life. The plan includes but not limited to, how an individual spends, saves monies and invests his or her financial assets. It encompasses knowing how to budget, manage cash and taxes, borrowing of funds, the use of credit cards, minimizing risk, investing and planning for retirement. Such a plan also requires a vigilant thought process for the future so he/she can tweak their financial plans as needed due to changes in lifestyle and economy.
The future is always uncertain. However, having a financial plan for the future can save a person a lot of grief. More importantly, it can help tremendously for that young adult who is fresh out of college, and at the beginning stages of life; for the young adult who is preparing to attain his or her Doctorate, and will be living, most likely, completely on his or her own.
Today is the day to start saving money for retirement. The way people can be more informed with where there money goes, and how it is spent is by merging unnecessary accounts together. This gives a better view of how much is at hand, and the account information is very helpful in knowing how it is used. This method is informative and simply, and can help save a lot. Also, people can pay them selves first. By doing this money is put into a specific account before anything else. This way there is less to spend or waste, and its almost like it was never there to begin with so it is not missed. Along with those options people should sacrifice unneeded luxuries to save money, especially during the warmer months. One article says, “Summertime is notorious for...
You will need to begin retirement planning as soon as you can. When you are young and taken by raising a family, it is difficult to think ahead toward retirement at first. However, this is the time to look into a 401K or a pension plan where you work and put as much as possible into these from every pay check. You need to start investing something toward your retirement. The investment can also be in IRAs, stocks, bonds, mutual funds, money markets, or other investments of your choice. Set aside an amount every week that is strictly for investment. Make this a habit and not be tempted into spending it.
Personal financial planning is important because it helps you prepare financially for the future. My first short-term financial goal is to have an 8-month emergency savings account. This class helped me understand the important steps needed to achieve my financial goals. “Successful financial planning requires specific goals combined with spending, saving, investing, and borrowing strategies based on your personal situation and various social and economic factors, especially inflation and interest rates” (Kapoor, Dlabay & Hughes, 2012). First I evaluated my spending habits. This allowed me to see where I was
Money is essential for our everyday lives and people have to face choosing whether to save up or spend their money. Of course earning our money can difficult considering that it is a necessary asset that affects every aspect of our life. Every day we see people working hard to earn as much money as the can. However how they use using the all the money earned is a frequently debated topic have seen many people who earn money and can no restrict themselves from spending .They usually act like wild animals fighting for food and being separating from the delusions of business. People are usually confused and frustrated by the amount money the use in a week without knowing that their daily impulse buying objects have piled up. Although it can be very hard to control there are many easy steps to stay away y from spending and instead saying up. Setting a goal, recording the amount you spend and even lowering your expenses can be small steps that will lead to great success in saving for the future
In my conclusion, it is very important to save for the beneficiary of the upcoming future. Simply setting aside a percentage of the income received each paycheck will be the backbone to an unexpected situation. Emergency reasons, retirement, and luxury spending can all be obtained if one is mindful of their spending. Money is the biggest cause of stress in America today and mindful everyday spending can lead one to experience real financial freedom. The earlier an individual begins to save in life, the more financially stable they will be in their