How Financial Education Helps You Build Wealth
How Can Financial Education help in the Wealth creation Process?
- What is Financial education?
- How can Financial education help you in the wealth creation process?
- How can Financial education help your Kids Plan better for their future?
- Why is Financial Education important?
Read On!
So, I’ve been trying to acquire the next land by my fence to expand my compound. Some years back When I bought this plot of land where I built on, I was 24 and it was N850k then ($1,000).
I didn’t have up to N850k but I somehow found a way to convince my Landlord then to allow me to pay in bits. Now hearing about the cost of a plot here, I screamed!
Few weeks back, I saw the same young man who sold me this land. He had 6 plots then given to him by his family and he sold all 6.
I have not seen or heard anything he used the money for, he was literally doing menial street jobs yesterday for someone building a house on one of the lands. He looked unkempt and pale, maybe due to drugs he now takes.
That is why I felt the burden to make this post. We don’t take Financial education seriously and We don’t teach our children financial education.
There’s a need to start teaching your children how to manage money and resources.
I started saving my break money in primary school and during holidays, I will use the money to sell coconut candies, groundnuts and oranges in front of our house.
Need I say, I started working in an abattoir when I was 15 in JSS 3.
At the end of the year, I’ll have enough money for Christmas flex and then buying my first ever laptop with the accessories I started this Blogging journey with in 2012.
Financial education provides individuals with the knowledge and necessary skills to manage their finances effectively and make informed decisions about investments, savings, and spending.
As my kids are growing, they will have to bring their old school bags and show me it’s actually damaged before I would get them a new one. You can’t take sweets and juices or drinks anyhow because they are at home.
You must take it a few times a week and in moderation. This will teach you how to manage and also not to waste resources just because you have them. Everybody has their own body cream which should last at least a month before they get a new bottle.
I’ve not started giving them money, but when I start, they already know they will manage $50 for a week. After all, what expenses will they be footing for themselves at this young age? It’s all on me as the father!.
What is Financial Education?
Financial education is the process of learning how to manage your finances effectively.
This could be acquiring the knowledge, skills, and attitudes required to make informed financial decisions that can help you achieve their financial goals.
Achieving your Financial goals could be saving for retirement, paying off debt, investing in the stock market and many more.
Financial education can be gained through several sources, such as books, verifiable online courses, seminars, or working with a financial advisor.
Why is Financial Education Important?
Financial education is important because it helps individuals take full control of their finances:
This is the best advantage of Financial education because it builds your financial confidence, which can help you make better financial decisions and feel more secure in your financial future.
Below are more reasons why Financial education is important:
- Financial education improves financial literacy, which can be essential for you to navigate the complex world of personal finance.
- Financial education encourages saving and helps you understand the importance of building an emergency fund, saving for retirement, and other long-term financial goals.
- Financial education teaches how to budget effectively and manage your expenses to avoid overspending.
- Financial education helps you understand the importance of good credit and how to build and maintain a strong credit score.
- Financial education teaches about responsible borrowing, which can help you avoid taking on too much debt or making poor financial decisions.
- Financial education provides individuals with the knowledge to identify and avoid financial scams and fraud.
- Financial education teaches about investing and helps you understand the risks and rewards of different investment options.
- Financial education provides you with the tools you need to work towards achieving their financial goals, such as buying a home, paying off debt, or starting a new business.
Financial education has played a huge part in the success of every wealthy individual’s wealth creation journey.
Believe me, you don’t want to ignore this part.
See how Financial education can impact your goal of building wealth below:
1. Budgeting:
Financial education can teach individuals how to create and maintain a budget, which is essential for managing expenses and avoiding overspending.
With a budget in place, individuals can allocate their money wisely, save for emergencies, and plan for long-term goals.
2. Investing:
Financial education can also help individuals understand the different types of investment options available and how to assess their risk and return.
This knowledge can help individuals make informed decisions about investing their money, which can lead to long-term wealth creation.
3. Debt management:
Financial education can teach individuals how to manage their debt effectively.
This includes understanding the different types of debt, such as credit card debt, student loans, and mortgages, and how to pay them off efficiently.
By managing debt effectively, individuals can improve their credit scores and free up more money to invest and save.
4. Retirement planning:
Financial education can also help individuals plan for their retirement.
This includes understanding the different retirement options available, such as 401(k)s, IRAs, P,FAs or the version available in your country and how to maximize their savings for retirement.
By planning for retirement early, individuals can ensure that they have enough money to support themselves in their later years.
Summary:
Overall, financial education is a critical component of wealth creation.
By providing individuals with the knowledge and skills necessary to manage their finances effectively, financial education can help individuals like you and I make informed decisions about investing, saving, and spending, which can lead to long-term wealth creation.
I hope this helps you start making the right Financial calls for your family today.
See you in the next post.!