Financial Education: Money Management Tips

Having money makes your life easy. With money, you can not only buy essentials and pay easily for your needs (including medical bills), you can even buy happiness and pleasure. Let's say you feel tired, you feel bored, you can go on a vacation, hire a personal caregiver who can give you a pedicure, manicure, massage, etc. service. Imagine how relaxing and pleasure it would be to get a hot oil massage when you feel tired and lethargic. If you have money, you can even help your relatives. You can help your parents with finances, you can help your siblings and their family. Doesn't it feel good to help your own flesh and blood? You walk down the road and see a homeless man, if you have money, you can buy him food, even buy a pair of nice trousers. The sense of satisfaction and pleasure you get by helping poor people is immense. Having money means you can also earn more money. You can invest in the stock market, and real estate, create your own business and build a fortune. Even when you are working as a freelancer, you can pay money to build skills so that you can earn better.

But sadly a lot of people do not have financial education. They don't know how to manage their money.

Financial Education is Important

Financial education is very important, however, our educational system does not include this topic in the curriculum. We sure do have "Finance subject" in college and university, however, this course is available for only those who are trying to pursue education in management niches like accountancy, business studies, and business administration. For other people who are studying science, human sciences like arts, literature, sociology, etc. "Finance Subject" is not available. Even for management students, the "Finance Subject" does not include personal finance, it mainly focuses on business-related finances. Our education excludes financial literacy from its curriculum. We are not taught in schools and colleges about how to save money, how to build wealth, how to manage money, how to grow net worth, how to cut expenses, and the things like that. This is one of the reasons why a lot of people are very unsuccessful when it comes to personal finance. Since people do not have knowledge and skills in managing personal finance, a lot of people end up living a very difficult life despite earning well. Therefore, I believe our education should include this topic so that people are able to handle their finances properly and improve their lifestyles.

Learning Money Management Skills

Unless we are studying commerce and management subjects like business management, business studies, finance, accounts, etc. ou schools, college and university exclude the topic of finance in their courses. For example, if you are a student of science, you don't have to study finance, if you are a student of human sciences, you do not have to study finance, however, no matter what career you pursue you always need financial literacy to manage your personal life. Someone in the medical profession does not study finance in college and university, yet he still has to manage his finances and he needs the knowledge to manage his finances, sadly, he does not have the proper financial literacy, despite earning well, he might have scarcity of money in his life because he might be lacking money management skills. It does not matter how much you are earning, what actually matters is whether you are saving or not, whether you are investing or not, if you don't save, if you don't invest, you will not be able to grow your wealth. Therefore, the first step in building your wealth, and securing your future is to start saving and investing your money. Sadly, not many people are interested in saving.

How Learning About Budgeting Helps

A budget is a statement of your estimation regarding your income and your expenses. Your budget will estimate your expected income and estimated expenses. For example, your budget will make a list of your estimated income, for example, x amount from your salary, y amount from your share dividends, z amount from your crypto trading, etc. Likewise, your budget will also make a list of your expenses, for instance spending an amount for your rent, b amount for your gas bills, c amount for your credit card bills, d amount for grocery shopping, etc. Sadly, not many people have these skills. They cannot create their own budget, that's why they fail to save and fail to invest.