What is financial education?
Financial education refers to the ability of applying and understanding various financial skills effectively, including saving, investing, budgeting and personal financial management. It is the foundation of your relationship with money. Educate yourself to understand the financial jargons and concepts as it is a lifelong journey to success and making money in life. Individual becomes self-sufficient by acquiring financial education as it assists them to make well-informed and correct decisions with money across all areas of their life.
When people get to start learning financial concepts as early as possible from their school life, they become better in learning different budgeting methods and monetary goals which will manifest into a good economic situation later. They will better understand the economic concepts that revolves around money expenditure and day-to-day activities such as inflation, taxes, recession, and currency exchange etc.
Financial education can be a challenging task for most of the students. And if you are a college student, taking help from your busy seniors might not be suitable all the time. As your schedule is not matching with their schedule to help you with your financial assignments. If you have teachers that might help you then why not consult them (bestassignmentwriter, 2019). You can even use other beneficial online academic sources such as “Do My Dissertation for Me UK” for financial guidelines and supplementary work done.
Here is the list of five main reasons why financial education is important for everyone.
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It keeps you updated on the current possibilities
Due to globalization and rapid changes that occur in technology and culture, the way we spend and use money is evolving at a faster rate than ever before. Monetary systems are also revolutionizing and economy landscape is also changing. Getting financial education as early as possible will enable you to be knowledgeable and updated on these economic changing trends. Having literacy on currency and trading topics will save you from getting into online scams such as in banking and crypto-currency. Therefore, learning financial concepts is a lifetime process that will help you to better understand the world economies and changing trends.
There are many financial education programs and policies being installed in large emerging economies and in majority of OECD countries as well (Kaiser and Menkhoff, 2020). These programs varies in design, size and coverage but despite of these variations these are designed so that it can be implemented in colleges.
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It keeps you updated on financial trends
When you acquire financial education thoroughly in matters of economy and money, it puts you in a position to get the most of whatever trends that are taking place in, businesses, big companies, at government and international level.
This will enable you to spot economic situations that is linked to everything you purchase, for instance, if you want to purchase online academic service for your assignment from the best college essay writing service then it is crucial to be aware of the economic trends to have a budget that can enable this expenditure. At the crux of it, one major thing to check is inflation, taxes and existence of any market bubble which will tremendously effect your buying power and thus lifestyle. Buying, investing, and selling any major assets at the worse economic conditions can result in the significant loss of your hard earned money.
Thus, receiving financial literacy is important for all areas of life even before investing your money into buying a new car or a house, you will have the ability to better understand the economic and financial trends for making wise and profitable decisions.
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It will save you from money scams and money misadventure
One of the crucial aspect of receiving good financial literacy is the capability to comprehend when a business venture is bound to fail and loss of money in it. There is the dire need of learning tips and tricks on recognizing potential money-grabbing fraud schemes and poor and bad terms of investment ventures. Scammers takes the advantage of people being unaware and uneducated on financial aspects of these ventures. You can potentially save yourself from these scams and money misadventure by financial literacy only.
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It will help you to prepare for emergency situations
Just like life uncertainties money matters are also highly unpredictable. Even the good financiers are not able to foreseen the erratic behavior of it. Being financial literate will safeguard you against uncertainties and unforeseen financial situations and circumstances. In a crisis situation, knowing how large forces will behave in the marketplace and having a personal budget for emergency situation will save you and your business tremendously. Financial education develops critical thinking and better decision making abilities along with the ability to manage personal finances which will equip everyone for surviving rough and doom economic situations.
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It will help in debt cycle and gain control over your money
If you are struggling to make payments, overwhelmed by debts over you and can’t afford bills payment then receiving financial education will be the first step to resolve all these problems and gain control over your money. As financial education teaches you to make budget which will relate your expenditure with your income to avoid debt accumulation and over spending at a time. It will help you to understand the concept of interest rates for taking debt loans so that you will be able to pay it back on time without difficulty.
Conclusion
To conclude, the above mentioned points are the most important reasons for anyone to gain financial education in college. This field is vast with tremendous future growth. It also gives you the leverage to switch your field into any other accounting fields.
Reference:
BAW. 2019. Struggling With Your Finance Assignment? 5 Easy Steps to Keep in Mind! .Online Available at < https://bestassignmentwriter.co.uk/blog/struggling-with-your-finance-assignment/ > [Accessed on 8th July 2022].
Kaiser, T. and Menkhoff, L., 2020. Financial education in schools: A meta-analysis of experimental studies. Economics of Education Review, 78, p.101930.
