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The importance of financial education

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Written by   45
5 months ago
Topics: Education, Sharing
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In terms of finance, we certainly will not discuss finance or economics much because finance is an economic field that focuses on finance.

In this case, there are still many people who do not understand financial education, especially for young people, they prefer to spend their money, even though it would be better if we invest the money or save it for their future.

Therefore financial education is very important for young people in particular. So that we can understand this topic more deeply, we will discuss starting from the definition of finance, its functions and benefits for ourselves.

Definition of finance

From the point of view of knowledge or financial science, if we discuss finance it means we will study the finances of individuals, your business, and organizations. We must know how to manage, increase resources, allocate funds and look for the results of calculating risks and prospects for the future.

In the administrative aspect, finance also has a different meaning, namely how to manage finances on income and expenses in a business. So we must also learn about financial management, which is a series of company activities that begins with how we get funds, then we have to manage the finances as a whole.

Financial will also be said to be good if the management system is regular and accountable to the parties involved. If all aspects go well then financially can be achieved well too. As for financial freedom, it means that individuals, businesses are free from debt, have a steady income and have financial reserves for the unexpected.

Financial function

As a young person at a productive age, you must know the function of this financial. If you think that financial management is only applied to your business or company, you are wrong.

So we must understand first what is the function of finance that we will apply in our personal lives.

Some financial functions, such as:

  • Planning function

We must focus on the main needs that must be met, balance between our expenses and income (don't be wasteful) and avoid your mere desires. From the three points above, you must really hold it well so that your future financial affairs go well.

  • Control function

even though from the first function you have set, but of course young people will easily change the number (money) that already exists. This is where the control function of your financial expenses is not greater than your income.

  • Check function

You must check your finances, of course, so that there are no mistakes in your management, whether there is a use of funds that exceeds the limit or you have made a mistake since you started, it must be really noticed and checked again.

  • Reporting function

For this you can do it or not, in essence you have to know that your expenses are not greater than your income so that your financial condition remains stable.

Financial benefits

  • Get used to living frugally

  • Practice discipline

  • Avoiding our habit of being in debt

  • And the most important thing is to have a plan for our better future

That's the understanding, some of the functions and benefits of financial finance. For young people who are just learning to apply your finances, your finances may seem a little difficult, but if we don't learn from young, until we are old, nothing will change for us.

Maybe some of the things above will be considered trivial by some people who from the start did not know or did not know about financial education, but if we apply this finalcial education in our lives, I am sure your financial future will be more stable.

We will not lose time if it is learning for ourselves, don't waste our youth just to have fun from the money we have worked so hard to earn from our work, collect your money for your old age later.

4 april 2022

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Written by   45
5 months ago
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Comments

Avoiding our habit of being in debt, uuh this is very sulit pitik broh.

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5 months ago

Iya terutama utang meng bakul kopi ro udud haha

$ 0.00
5 months ago

Thanks for this my friend. This is very important matter in a family especially for a woman who is entrusted to manage the money in terms of income over expenses. Money should be spent wisely that every in the end of the month, a couple should have budget for savings.

$ 0.00
5 months ago

yes hopefully this can be helpful for all readers.😄

$ 0.00
5 months ago

What great information, thanks for sharing.

$ 0.00
5 months ago

your welcome, hopefully useful

$ 0.00
5 months ago