postheadericon the importance of financial knowledge

a study in Australia have revealed that increased financial education at 10% of the population will potentially improve the Australian economy by 6 billion Australian dollars per year by opening 16,000 new jobs.

It could all happen because people are increasingly aware of the importance of managing their finances and how to use it for the future. Therefore, school children should have been provided with financial education, 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 principles of finance will have a better retirement plans, have greater wealth, and can avoid the debt (for consumer goods) with more good.

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

According to Robert Kiyosaki, education can be started from the words. Basically the same as the principles that already exist, ie “you are what you think.” Because, words alone would aim to “feed” our minds with something positive, or negative.

Start a financial education with words such as could be done by using a “language rich”, as the term assets and liabilities. But, of course, words alone are not enough, because it is only a part of a process.

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