Economic decisions without enough knowledge can lead you to serious errors. Instead, make decisions based on financial knowledge gives us a better economic alternative.
Understand the field of finance is a task that must start from young. Learning to know and understand the language of money since you are a young kid will increase the ability to generate and multiply on the basis of appropriate financial strategies. Also young people can bring a healthy economic life from an early age, which is important when the base of economic development of any individual is based on the savings.
Sometimes it is given little importance to the financial or economic culture, but it is unquestionable the importance of money in our lives. It is necessary to give it its proper perspective and consider it as a cornerstone in the development of human beings. For this reason we must consider financial education as a fundamental part of the knowledge that we must instill in young people and anyone who wants to improve his financial situation.
For years, money was something bad. You should work and have just enough money to survive, because “money is the root of all evil!” and “you shouldn’t talk about money in front of the kids” as if money was some kind of secret between adults.
So, as adults, we have to start our financial education and reset all the info we already have in our heads, but as parents, we should teach our kids that money is not a bad thing, but a tool to reach some kind of things.
We could expect schools to teach something about it… but we need to take control of our own education and teach our kids to do the same!
So, if you are a grown up trying to reset all the bad info you have about money, you should:
• Read ALL financial books that recommend you. You don’t have to agree with all of them, but they are all open minder. Poor Dad, Rich Dad is a great book to start.
• Debt: I was told all my life that loans were for rich people. It’s not true! Loans are a great way to start a new business or buy new things… but can you really afford to pay a loan???. Smart debt is a thing, debt is another thing. Get a loan to start a new business. Plan carefully how much do you need and how much time will It take to repay. Besides, you have to live and pay expenses… so don’t miscalculate.
• The Responsible Credit: raise awareness of the importance of saving and responsible credit management. If you earn usd100 and spend usd300 in credit cards, you are not ready to own a credit card. So, simply cut them in half. Pay in cash for a time to learn how to spend.
• The business world: Knowing the business world for a smart consumer to contribute to enriching our heritage, using the resources we have and increase them.
• The Family: A family can keep your finances healthy when establishing communication between its members, increase their knowledge about financial issues and the importance of prudence in the expenditure of money and resource management. The family is the basis for achieving optimum financial results.
The financial culture is based on savings and the proper administration of them, so that part is necessary to understand how to manage them effectively causing the possibility of savings.
Bred in the habit of saving small to ensure a future equity favors to overcome financial difficulties. A person who grows with the clear idea of the need to save part of their income will be less likely to fail financially.
But always invest some of your savings… NEVER ALL OF THEM!!!
You can’t work 24 hours a day, 7 days a week!!! So, start thinking how your money can work for you stead of you working for money!