Thursday, February 25, 2010

The necessity of financial education.

In this economy where all the conventional wisdom regarding assets and your liabilities has been turned upside down, the most important thing has been lost on most people. The need for financial education has become a crucial aspect of avoiding another disaster in our economy. The schools and states have been emphasizing Math and Science in order for the U.S. kids to catch up with the world but what about the financial education. Many of these same kids’ parents have fallen on hard times because of the lack of grasp of basic financial sense.

We can rely on financial experts and advisors regarding technical aspects of money matters, but the basic financial education should be the responsibility of everyone.

Basic financial education can be like the calculation on credit card and mortgage interest rates, what is debit and credit, how to balance your accounts, how to balance your monthly household budget and daily dealings that one do regarding their finances.

If we are not able to know what is going on with our finances, then how can we expect that other people will not take advantage of our ignorance? Although I know that basically human beings are honest, but you are setting yourself up for financial ruin if you feel that some person will not take advantage of your lack of financial knowledge and rob you off your precious and hard money.

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