Monday, August 13, 2018

An Investment That Works - Financial Education

Economic instability on global level is really alarming. It is affecting almost all countries and they are feeling pressure to cope with the always changing situation. In these circumstances, investment on financial education on individual and national level is extremely important. Every person knows the importance of financial education for better living conditions and for understanding difficult financial terms.

Financial Education

But many argue that there is lot of information available for financial matters on internet and other means of latest technology. This is enough for entrepreneurs and common people to get their required information. Therefore, it is unnecessary to waste money on financial education. But this is completely unreal and potentially dangerous argument. In fact, proper financial education provides such advantages to a person that are not available either with insufficient information gained through internet or via advice from other experienced persons.

Advantages of Financial Education

Investment on financial education, on both individual and national level, pays off well. It helps persons better understand the causes of their related financial issues. Through better understanding, they can make right decisions about spending their money and gain profit. In the absence of such education, they can easily fall a prey to investing on things not suitable for them.

Financial education provides better understanding for matters related to money and business that are otherwise can’t be grasped even if experts are contacted. One can better understand the difference between asset and a liability. Detailed financial education describes how one can use (good) debt and taxes to attain financial success. After attaining such useful information and knowledge in detail, it will become easier for you to take your own financial decisions.

This type of education provides tools to better determine about the chances of progress of any specific type of business activity. One can also predict about the sector that will face problems amid recent financial situation. It will assist the entrepreneur to prepare themselves in case of any type of financial crisis as we have seen in recent past (especially financial crisis of 2008). Having complete and comprehensive monetary knowledge through financial literacy will allow individuals and society to handle any financial crisis successfully.

Disadvantages of avoiding Financial Literacy

Not only that financial education provides certain advantages, but it also saves from negative impacts that are result of avoiding proper financial literacy and reliance on shortcuts. It has been proved through various studies that people with insufficient financial literacy tend to borrow more, pay more fees for financial products and services and have less wealth as compared to those having proper monetary education.

If you are deficient in monetary education, then you try to compensate this by taking advice and guidance from experts. But this advice can’t provide complete understanding of all financial matters. Different experts have their own understanding of difficult financial terms and situations and they interpret this according to their personal understanding. It is especially evident for complex terms. These monetary advices also have conflict of interest and only your own knowledge will be free from such favoritism.

Apart from that, there are different requirement for different types of investors and entrepreneurs. Same treatment to all these individuals doesn’t provide better solution to them. A pro service company in Dubai has different requirements as compared to real estate company in Arizona. In this scenario, only complete knowledge about monetary matters through financial education provides complete solution to monetary problems. This type of education is not only important for individuals but also necessary for nations by assisting them to get rid of financial crisis.

About the writer: Mona has 6 years of experience in the field on content writing. Currently, she is working with Dubai-based business consultancy firm Riz& Mona Consultancy. Her fields of specialty include investment, offshore business, trade, small business and others.

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