Why Financial Education Is Important
Literal education gives the capacity to reference information.
This article is about the importance of financial education. In the world today, we go to school for literal education (reading and writing), which is very important. Literal education is important because it enables us to have the capacity to reference information in the literal form. This gives us access to the world of information recorded in this format, and also to be able to transmit information in this format.
Professional education gives us skills.
After the literal education, we move on to professional education where we seek to become professionals e.g. doctors, lawyers, engineers, web programmers etc. Professional education gives us the skills that we can exchange as a resource, throughout our professional careers, for other resources that we need in our own lives.
Skills are exchanged for other resources through trade.
When we exchange the earned skills, we exchange them for other resources that we need in our own lives, either directly (barter trade) or indirectly (monetary trade). In today’s world, this exchange usually takes the form of money, as it is a universal medium of exchange, whose value is fluid as opposed to the fixed value of tangible goods and services. Money makes it easier to exchange it for whatever good or service needed, given that it’s universally accepted due to the fluid value it represents.
Financial education is needed to make the most of these resources.
This brings us to the third type of education that is required to be successful, especially in the money driven world of today, and this is financial education. Financial education is important because we need it not just in our professional lives, but for the all of our lives. This is because, for as long as you live, you shall always need resources to live by and thus the need to know how to acquire, and use them effectively.
Resources in todays economy are measured in monetary terms.
In the financial economies of our world today, resources are measured in monetary terms (check out the article “What Is Money?”). Knowing what money is, how it works, and why it works the way it works, puts you in control of your resources. In other words, you will know how to go about acquiring resources, and how to use them effectively to bring about utility or satisfaction.
School systems, unfortunately, do not teach much about money.
Unfortunately, our school systems do not teach us much about money, instead, they associate it with greed and evil. What’s interesting about greed and evil is that, they are not monetary characteristics, they are human characteristics. They are only smeared onto money to dirty it in order to keep the human conscious clean.
They say “more money, more problems”.
They say “more money, more problems” but the truth is, money doesn’t cause problems, money solves problems. Its people that cause the problems because money attracts people, and when people go to where the money is, they take problems with them and then blame money for those problems.
Gap between rich and poor is due to lack of financial education.
These are all excuses to skirt around the issue of financial education. Financial education is extremely important, and the lack of it is one of the reason why we see the rich getting excessively rich, and the gap between the rich and the poor getting extreme. Many of the middle class are going from middle class to poor, due to a lack of understanding of how money and how it works.
Financial education is ultimately your greatest asset.
If you want to keep your head above water, and keep your accounts in order, you’ve got to seek financial education. Financial education is ultimately your greatest asset, you should take responsibility for it as you’re going to need it for all your life.
Overall, to be successful, we need literal, professional, and financial education.
All in all, to be successful in today’s world, we need literal, professional, and financial education. Literal education will give you access to information, professional education will give you skills, but financial education is what will make all that education pay off. You will know how to invest your skills profitably and how to use your returns effectively.
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