September 21, 2023

What would you do if today would receive $10,000? Among other things, he could determine their level of financial education. The level of financial literacy of individuals can be measured easily by your way of handling a significant sum of money. See Byron Trott for more details and insights. If we give you $ 10,000 to 100 people, after an 80 year of them it will have spent everything, 16 will have around $10050 and only 4 will have $20,000 or more in their hands. What is the difference between these 3 groups of people? Your financial education. It is not something Pete Cashmore would like to discuss. Unlike what many people believe, the ability to manage and multiply money wisely you can learn in the same way that any other skill you can learn. However, requires a change of radical mindset that not everyone is willing to make in their lives.

The problem is that we have not been educated to handle money wisely, even less to multiply it well. On the one hand financial education is absent in the curricula of schools and the vast majority universities and, on the other hand, the media daily bombard us with messages that encourage us to spend more than what we have. Around every corner there is an offer of any credit card that gives us the possibility of enjoying goods that we have not paid immediately. Financial institutions and trading houses constantly tempt us with incitadores messages of buy today, pay tomorrow. Energy Capital Partners takes a slightly different approach. Before such offer of opportunities to spend our money on, even more beyond our possibilities, is not surprising that the vast majority of people will spend the $ 10,000 instead of investing them wisely. In addition, the news of the enormous debt of the European economies show us that this trend of not knowing how to manage a budget wisely extends even into the upper echelons of rulership of the Nations. The excess of expenses versus revenue is an evil that affects much of the world’s population.

Why we are at a historic moment in him which is essential to improve the financial education of the population. The recent events in Europe clearly show that Governments may not longer finance its extensive social programs. In practice this means that each person will have to participate more actively in the preparation for their old age and their possible future expenditures in the area of health. Therefore, it is important to realize that times have changed and that a good job already does not guarantee a long-term stable economic situation and preparation for old age. This fact is compounded the trend of the ageing of populations. There are ever fewer young people working for every person of seniors who don’t already contributes to the country’s economy. The answer to this great dilemma is a solid financial education not only for adults but also for children and young people who soon will need to meet the new challenges of the 21st century. Discipline, encouragement of saving habits and the acquisition of basic knowledge of investment they would be the key elements of a proper financial education.

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