I won't sit here, like the keyboard warrior I am and have anyone say to me it's too much to understand money.
Peeps, it's 2023. It's time we unravelled the biggest mystery of Adulting 101.
Becoming financially educated.
I have a personal gripe with not doing this before I was 18.
My parents were from the generation that didn't talk about money. It was never taught in school. And so when a credit card came my way I, in my naive state, decided to run with it.
And I fell. Hard.
Some 18 year olds have their head screwed on. I was getting my AAT at college so I should have known better right?
Wrong. I'm afraid that's not how it works.
In an age where digital transactions are becoming the norm, credit is thrown about like confetti at a parade: indiscriminate and hard to clean up after, and economic fluctuations frequently make headlines, we might wonder how many of us truly understand the world of finance.
If you've ever been overwhelmed by financial jargon or found budgeting difficult, you're not alone. Even studying accounting, I never understood the language of money.
Until we started this business.
Why then? Because so many people who had more life years on the clock, knew as much about money as 18 year old me.
Financial education, despite being a cornerstone of personal success and security, often takes a backseat.
And when it does, disaster can strike.
But I'm on a mission in case you hadn't noticed.
Here's why it's time we shifted gears and started paying more attention to being financially educated:
1. Mastering Personal Financial Health
Like our physical well-being, our financial health requires attention and care. A good understanding of money management, saving techniques, and investment strategies can lead to improved financial decisions, ensuring a more stable future.
2. Avoiding the Debt Abyss
A significant number of people fall into debilitating debt. The culprit? Often, it's a lack of understanding of interest rates, credit cards, and loans. A strong financial foundation can act as a safeguard against these common pitfalls.
3. The Power of Savings
With financial education, we can understand the profound impact of saving early and consistently. Thanks to the magic of compound interest, money saved today can grow exponentially, ensuring resources for unforeseen expenses or retirement.
4. Making Informed Investment Choices
In an ever-evolving financial landscape, numerous investment opportunities beckon. Financial literacy equips us to evaluate these options, balancing risks with potential rewards, and ultimately leading to better-informed choices.
5. A Pillar of Economic Stability
On a macro scale, a population well-versed in finance contributes to a stable and robust economy. Sound individual financial decisions reduce the chances of widespread economic pitfalls, such as bubbles and crashes.
6. Empowerment and Independence
There's an undeniable sense of empowerment that comes with being financially literate. It reduces dependency and allows individuals to take control of their financial destiny, navigating challenges with confidence.
7. Consumer Protection
A financially educated consumer is less likely to fall victim to scams, fraud, or predatory lending practices. Knowledge acts as a shield against exploitation.
8. Inspiring the Entrepreneurial Spirit
Financial education can also pave the way for entrepreneurship. By understanding finance, potential entrepreneurs are better equipped to launch their ventures, driving innovation and job creation.
9. Well-being and Peace of Mind
Money-related issues rank high among causes of stress and anxiety. By mastering our finances, we not only take control of our economic situation but also alleviate a significant source of mental strain.
10. Securing the Next Generation's Future
Children often emulate adults around them. By prioritizing our financial education, we set a precedent for the younger generation, ensuring they inherit sound financial habits and a brighter economic future.
Financial education is not just a personal asset—it's a societal necessity. As the world becomes more interconnected and the financial landscape more intricate, there's an urgent need for individuals to be well-versed in financial matters.
It's time to shift the narrative and place financial education at the forefront, ensuring a secure, prosperous, and informed future for all.
We don't need anyone being like 18 year old me.
Read more about the importance of financial health, education & Jess' quest for getting people in the know in the book Financial Freedom Explained. Or order your copy now!