Financial education is all about learning how to balance your earnings, expenditure, investment and savings. It is necessary for individuals, especially those from middle class and higher income groups to educate themselves over each area pertaining to finance. Studies show people who enroll in programs offering financial education have a better grip on their financial situations in their day-to-day life.
Such people plan a financial budget well beforehand to ensure a smooth economical living. This way, financial education puts you in better control of your finances. Through proper financial education, you are bound to develop financial skills, which are necessary for survival and to boost your confidence level. In addition, as time graduates, individuals are able to make well-versed financial decisions independently. All this is possible through good financial education only.
Alongside financial education is financial wealth. The intention of every individual is to make the most of financial wealth they have accumulated over the years. Only a few franticly crave for creating wealth through every way possible. While wealthy people spend lavishly and people in a lower income bracket strive to keep up with the Jones’.
Financial intelligence plays a major role in the creation of financial wealth. There are numerous books addressing this vital feature of financial wealth. In spite of this, many people fail in their endeavors of accumulating financial wealth. Financial intelligence refers to knowing the importance of money in terms of your assets and liabilities. The reason why some people remain poor all through their life is the inability to differentiate between liabilities and assets.
Where finance is concerned, assets refer to the money that you introduce each time to your personal bank account, whereas liabilities are anything that may require you to spend from your pocket.
What does financial education include?
It includes, managing money, budgeting, avoiding identity theft, balancing checkbook, keeping each statement of finance confidential, managing debts and much more.
What does it take to build financial wealth?
To start with, always think positive in life. Make wise use of credit for investments and business purposes. Purchase a new car only when you have the available finance. Invest your money in small ventures rather than allowing it to remain stagnant in your bank. Lastly, increase cash flow by minimizing expenses.
Now it is obvious that, both financial education and financial wealth go hand in hand. Therefore, individuals need to educate themselves about both these aspects to lead a financially disciplined life.