The financial education allows us to be aware of the value of money and how to manage it to avoid waste and bankruptcy. By learning to manage our economy, we will be able to plan not only our current expenses, but also future ones, to enjoy a good quality of life in our golden years.
Objectives of financial education
Ideally, financial education should be instilled in us from childhood so that, in our adult life, it is easier for us to save and budget for our expenses. Growing up with financial education, or including it in our adult life, if we did not have it as children, is important for our development and stability. Next, we will take a closer look at the objectives of financial education.
Allow us to choose better financing options
For example, understand that not all financial entities charge the same commissions and interest, so we will learn to compare and choose the one that brings us the greatest benefits, whether it is loans, credits, or opening a bank account. savings.
Planning for our retirement
By understanding the value of money we will be able to avoid waste and have the ability to forecast the budget we will need for our retirement.
Save and generate wealth
By being aware of our income and expenses we can know what amount (or percentage) of money we can save each month. This saving will allow us to create a fund that we can invest to generate wealth.
Better understand financial products
For example, investment funds to know what to invest in. In addition, understand how we can renegotiate the loans or credits that we have to reduce commissions or interest, etc.
Better manage our debts
In order to avoid exceeding our debt capacity, which would put our financial solvency at risk.
Like these, there are many more objectives of financial education, but we can summarize them in that this discipline must provide us with the ability to be aware of our income, expenses in order to understand the value of money and know how to manage it consciously and wisely, in order to achieve the economic stability and, in the best of cases, wealth not only for us, but for our future generations.