FINANCIAL EDUCATION is the discipline through which financial knowledge is provided and, in turn, these are what allow us to understand how our money works. Making the correct use of it and allowing to add day by day what our budget allows will ensure the well-being of the present and progress towards the future.
In Argentina there is a large deficit in this area because it is not part of the curriculum of the formal education primary or secondary, nor of the university, with the exception of specialized economic careers. This type of education, which is neither more nor less an education for life, is only acquired from entrepreneurs who have been able to see in money the fruit of the accumulation of past effort and can become an initial help and possible engine of personal development. and future business.
Since the beginning of economically independent life, most human beings seek to enjoy it to the fullest, without appreciating the importance of accumulating capital. The accumulated expense of small enjoyments of “today”, movies, dinner outings, frequent meetings with friends, purchases of unnecessary items, etc. they erode the savings capacity that perhaps could give you the possibility of having your own house tomorrow, your car to work and a well-deserved vacation to rest. The indiscriminate use of credit (cards, financial, installments, etc.) lead to debt, which every day further distances the objectives that are sought from a young age.
Credit can and should be considered a tool to activate production and not to facilitate consumption. If we pay interest for superfluous things we are “spending” more for a satisfaction that could have been delayed. If we pay interest to produce more and obtain more goods, we are giving a dynamic effect to our economy and this would be truly positive.
In future publications, we will analyze some aspects of the financial organization on which we can work personally, family and business to help us have a sustained growth of our capital and a progressive evolution of our “company” with the use of available financial markets. in the country and the world. Today lending (being a creditor) to a country or province, to a national or multinational company through shares or negotiable obligations or being part of an FCI (Common Investment Fund) and through it, owning small portions of capital is very simple, and you can do it from a computer or cell phone connected to the internet.
Frequently and since the economic independence of their parents, the majority of young people acquire a level of expenses equal to or greater than their income, facilitated first by living alone, then with a partner and then raising children added to strong advertising campaigns that encourage consumption, to indebtedness and having “everything now” that little by little is dragging them down a very difficult path to get out and that only financial education associated with a much greater effort can do than if it had been anticipated in advance
Remember that financially educated children today will be debt-free adults tomorrow.
by CEDOC