Investing in financial education is very important
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One of the best things that you can do for yourself is to invest in financial education. It’s the first step towards building wealth. One thing to note is that you can graduate with a 4-year degree and learn nothing about personal finance. You might open a business but have no idea of how to read a financial statement.
Financial literacy is, therefore, a significant investment. Below are 7 reasons as to why this is so:
- Strategic Planning For Finances
Financial education will offer you a technical and more comprehensive means to plan your finances, for instance, which kind of investments work, how to save successfully, the assets that are more valuable to acquire (assets like gold and land), etc. It could even expose you to more investment opportunities you might not have thought of before.
- Security Purposes
One of the best things that can happen to you is financial security. Being financially secure is not only beneficial to you but also to your dependants like your children in the long run. Constant financial security requires meticulous planning, and self-education in various ways of achieving this is worth more than the time and effort spent on learning.
- Steer Clear of Scams and Financial Frauds
This is something that’s familiar to everyone. We’ve all come across many stories about people being victims of scams and financial frauds like the Madoff investment scandal, Enron scandal among others. According to a study by the Association of Certified Fraud Examiners, a normal organization loses a median of 5% of revenues annually as a result of fraud. For you to be protected from these scams, you have to arm yourself with lots of information about this reality.
Financial education will expose you to the various kinds of fraudulent operations happening everywhere. You certainly do not want to lose your money, money that you worked hard for, just because people can trick you into it.
- Provides For a Secure Retirement
Financial education will give you the tools to secure your finances ahead of retirement
Most people do not want to be completely dependent on their children when they retire. It is important to be financially secure upon retirement since it should be a time on your life when you should be relaxing and enjoying each day as it comes. A survey by Transamerica found out that 51% of Americans are confident that they are saving enough.
However, financial instability will not be an easy thing to deal with because it will be difficult for you to look for a job. Moreover, you won’t have the same energy and enthusiasm that you had when you were younger.
- Create an Inheritance for Your Children
One advantage of having lots of money and assets is that they can be inherited by your children and your children’s children. Those families that have been financially secure for a long time have been able to do so because of the efforts made by those who came before them. Financial strategies can also be passed on.
- Avoid Financial Losses
When it comes to finances, there are good investments and spending and also bad investments and spending. Financial education will provide you with information on both and will assist you to avoid losses. As it is always said, prevention is better than cure.
- Improves Quality of Life
Arming yourself with financial education will go a long way in assisting you to become financially stable and thus improve the quality of your life. The ability to enjoy the fruits of your labor while at the same time having some money saved for the future and emergencies, not falling victim to financial scams, being debt free and not having to victimize anyone will enable you to lead a happy life.
Today’s financial landscape is harder to navigate than ever. However, if you are willing to sacrifice your time and put in a lot of effort to learn all there needs to know about financial literacy, then you’ll benefit immensely for the rest of your life. After all, what do you prefer: putting in effort now for a better life later on, or a little bit of dilly-dallying now in exchange for a lifetime of financial instability?
If you’ve not yet invested in financial education, you are missing out on some great things. What are you waiting for? Make the right decision!
Kevin is a professional educator and a private tutor with over 8 years of experience. He is also a content writer for various blogs about higher education, entertainment, social media & blogging. Currently, Kevin works as a part-time writer for eliteessaywriters.com. During his off time, Kevin enjoys traveling and cooking. Feel free to connect with him on Twitter, Linkedin & Google+.