GRUPO ABAX: “Why Financial Education is important in a constantly changing economy”

When we talk about Financial Education, we refer to having information and understanding of concepts that help us manage money more efficiently.

They teach us how to enter the job market and generate income, but they don’t teach us how to manage money. The lack of this knowledge has a negative impact on society and the economy in various aspects.

Today we have generations living in a culture of excessive spending and consumption where it is a habit to buy a $50,000 sweatshirt, but it is “impossible” to buy a home, when in reality it is not impossible. It is almost impractical to do it with mortgage loans because there are few, but with a habit of saving and investing it can be achieved, it will take time and decide what to stop consuming something today for my future well-being.

The culture of saving has been lost and this affects the economic-financial stability of individuals or families throughout their lives. The pandemic, for example, surprised many people without being able to go out to work to generate income, without savings to sustain themselves during periods of quarantine and they had to go into debt and borrow money to cover that lack of money. Even so, post-pandemic we are still immersed in a need for immediate satisfaction that leads us to excessive consumerism, leaving savings completely aside.

It is important to save and invest because it will allow us to create wealth over time, have an emergency fund for contingencies, plan vacations, the education of our children, own a home or retire comfortably, among other objectives; having financial support helps us improve our quality of life. At present, life expectancy is increasing, even in some countries the retirement age has already been increased, but who sees themselves working until they are 80 years old? Who imagines living well with a minimum retirement like the majority of Argentines today? If you do not save during your entire active working period, it is very difficult for you to keep your economy stable when you want to stop working. I have grandparents who saved, capitalized and today live comfortably, and others who with a minimum pension of $80,000 need to continue working or financial help from their relatives. There are also financial risks such as loss of earnings, which is losing our ability to generate income due to a serious illness or accident, and there are financial instruments that help anticipate these risks and avoid the economic instability that may cause us.

In general, saving and investing allows us not only to avoid losing against inflation and devaluation in the short term, but in the long term to achieve greater financial peace of mind in our lives.

It is important that we get involved in our personal finances because it will allow us to be in control of decisions that require money and achieve our goals. We may not have defined many of these objectives, but what we do know is that for most of them we will need money and having this variable under our control will give us more freedom to choose. When I studied Economic Sciences, they did not teach me how or why to save and invest, my family was affected financially on many occasions due to the lack of advice and adequate financial tools, my environment and even myself have made mistakes due to lack of Financial Education, this It motivated me to specialize in investments and work as a Financial Advisor to help people. In summary, working with a Financial Advisor will help you save better and make more informed financial decisions to achieve big goals over time if you are not financially qualified.

Contact information:

Augustine Truccone
Financial Advisor at Abax @abaxgrupo
www.grupoabax.com

Public Accountant – UES21 – CPCECABA Tº 441 Fº 123
Suitable Financial Advisor in Capital Markets – AP CNV 1637.
Insurance Producer – SSN 99382.
www.contadorafinanciera.com.ar
Instagram: @FinancialAccountant
Linkedin: Agustina Truccone

by CEDOC

in this note

ttn-25