Monday, March 11, 2013

Financially Educating Yourself

There has been a lot of talk in the media lately about how it is important for children to get a good financial education. This is definitely important and it should help the next generation to have better money sense. To understand about how expensive debt can be, the importance of saving and how interest rates work, can be extremely useful.

However, there are a lot of adults that never had this sort of education as children as it was not taught in schools. This means that they will only have the knowledge that they may have gained from parents of their own experiences and this may not be good enough. Having generations within a family that do not have a good financial education can mean that bad debts just run through the family and this is not good. This is not necessarily their fault either, because they do not know better.

I know examples of people who think that they are good with money but are making mistakes. I knew someone who used to get a loan to top up his rainy day savings if they got below a certain amount. There are people who think their credit limit is actually a vat of money that they need to spend. There are people who cannot have money without spending it as they do not understand the importance of savings. There are people who are in debt their whole lives.

These people are not stupid, but they do not understand that what they are doing is not the best financially. They do not know how to behave wisely with money. There are people who know what they should be doing with money but choose to spend more than they earn and are aware they will be in debt but need instant gratification. These people are different because they are aware that what they are doing i not necessarily the best option but they do it anyway.

Where do you stand here? I feel that we could earn learn more about financial matters. There is always something to be gained by having a bit more knowledge. There are plenty of sources of information as well. There are free money websites where you can get a lot of information as well as books. Just make sure that you do not buy expensive books and then ignore them. Use the information that you find and work out how to be better with money. Get out of debt, save more, know where to invest and just understand more about your options and financial terminology and you will find that you are in a much better position to understand money and what you should be doing with it.

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