Financial education is a trend that is gradually gaining strength in recent times due to the high consumption of products and services. That's why parents, teachers, or business people are starting to educate their children, disciples, or employees on this sensitive subject. In globalization and new microfinance trends, we consider it appropriate to analyze this relevant and applicable topic.
What is the concept of financial education?
Financial education is the type of education that shows you how to make more money, manage it better, and spend it effectively. Focused on the proper management of finances, this education should be incubated from an early age, alternatives in this regard being courses and textbooks for children. They learn the value of money and how small or large investments should workcorrectlyy.
In practice, financial education is a sum of exercises that we undertake when we decide how to manage the current budget, to take or not to take an online loan only with the ID card, or, why not, to carry out a long-term investment transaction.
How do we develop the financial intellect?
The financial intellect results from constant, day-to-day work on money and its spending. Therefore, some people organically possess this ability to operate cash without excesses and difficulties. Others, on the other hand, need training in this regard.
The online environment is full of all kinds of interactive courses, workshops for financial education, but in reality, we still face an indifference to the level of financial IQ.
One of the most effective study methods is the use of established literature in this field. And here are two must-have titles that will transform your vision of money and its turnover.
First of all, the famous "Rich Dad, Poor Dad" by Robert T. Kiyosaki is the title that will turn your financial thinking into a correct mindset. Still, we should remark that the book does not offer solutions but only corrects some misconceptions in the financial patterns inherent in each person.
Secondly, "The Richest Man in Babylon" by George S. Clason, in which, through stories about and about money, the author manages to convey some basic ideas specific to financial education.
Here we must also mention the interactive games for families, which are meant to teach the little ones how to obtain and manage financial resources. One of the most famous is Monopoly, a board game in which you learn some basic rules about money: be patient; always have access to cash; not all assets have the value we value and how to become a reasonable negotiator.
Another board game for young traders is Catan. Historically placed in the colonists’ time, the game teaches the little ones and the big ones how the trade in the seaports worked. It is an activity in which the entrepreneurial spirit, interaction, and negotiation skills are developed.
And obviously, we couldn't ignore the Cashflow game, designed by Robert Kiyosaki. This game teaches you how to earn as many sources of assets as possible so that you can free yourself from the so-called rat race (lack of resources, poor management, etc.).
Another way to improve your financial thinking is to use planning. Financial management is much more efficient when done with a strategy. Keep track of your expenses and income. Find out what you spend the most money on and optimize by using fast online loans, for example, without taking your money out of your family budget.
It is important not to stop studying the effective methods of optimizing your budget to reach the right level of financial education that would solve your existing problems.