Importance Learning of Financial Knowledge

Financial Knowledge -- Either rich or poor, clever or foolish, young or old, all have in common when it comes to money.  

Yes, we all use money. Amount of money they had and how we use money is different from one another. But, it is certain in this world we all need the money, unless you live in hiding and away from the crowd. So, what is the sign of that?

This shows that we all need to have good financial knowledge.

In a study by the Organisation for Economic Co-operation and Development (2005) with tittle "Increasing Financial Literacy", stated that the education or financial  knowledge is becoming increasingly required of them because: 

1. People are now faced with an increasingly complex financial instruments, with various advantages and disadvantages of each.

2. The existence of the baby boomers (people born after World War II in America), and also increased life expectancy

3. Low levels of "open-mind about the financial" community.

In that research, stated that financial education is important not only for the benefit of individuals. Financial education is not only able to make you use the money wisely, but also can provide benefits to the economy.  

Thus, consumers who have a good financial education will be able to use the money according to what they need, so this will encourage manufacturers to make products or services that better suit their needs. 

In fact, a study in Australia have revealed that the increase in financial education in 10% of the population will increase Australia's economic potential by 6 billion Australian dollars per year by opening another 16,000 new jobs. 

It all happened because people are increasingly aware of the importance of managing money and how to use it for the future. That's why school children should have been provided with financial knowledge, so that later they can have control over the money they have. 

According to Annamaria Lusardi, professor at Dartmouth College, as quoted from USnews.com, said that the people who know the basic of finance knowledge will have a better pension plan, have greater wealth, and can avoid the debt (for consumer goods) with more fine. 

Outside their own country, financial education is taught in schools, but it was not enough. Just like most other subjects in school, financial education in general is less effective for teaching in a school system that is less applicable.  

According to Robert Kiyosaki, education can be started from the words. This is basically the same as the principles that already exist, ie "you are what you think." Therefore, the words themselves would aim to "feed" our mind with positive, or negative. 

Financial knowledge begin with words such as could be done by using the "language of the rich", as the term assets and liabilities. But, of course, words alone are not enough, because it is only a part of a process. 

Besides studied in school, financial knowledge can be done in various ways, such as the seminars, reading books, visiting financial sites (such as finance.yahoo.com), and of course with direct practice what we already know. Happy Learning!