Personal Finance Meaning
Personal Finance is the way of managing our money. In a way it helps us become richer day by day. So, the main goal is to get rich. Therefore, Personal Finance or Financial Literacy should be taught in schools to students as it is art of management of money or funds so an individual can survive its day to day life happily. For instance, not buying un-useful unnecessary things till you are financially stable is important part of Personal Finance. There are many books and courses available on Google. These books teach us about Financial Literacy and importance of money in life!
Why is Financial Literacy Important?
Well, we live in a world where only successful people are looked upon. As a result, guys with less financial literacy tend to grow slower than others. This is where Personal Finance or Financial Literacy comes in handy. It helps an individual manage his money or funds in a way that its increasing overtime. The goal is to get rich for the poor and not get poor for the rich. What an irony!
This is a world where everyone looks-out for themselves. Step-on rather than being stepped upon.
Importance of Financial Literacy for Students
The student in schools is a part of system where marks is key factor for determining success. A child is not taught about life. For instance, topics like money management, importance of money, investment etc. a student is not-at-all familiar with these topics. Japanese school system is one of best where there are no examinations till Grade 4. The main focus of Japanese early childhood education is to guide children to develop basic human attributes. Teachers in Japan provide children with age- appropriate technology in order to enhance play, rather than focus on academic skills. The Japanese students are taught importance of hardwork and these qualities are drilled in students at an early age.
Students thereafter, develop a habit to enjoy school life rather than solely focus on marks. That sole focus on grades instead of creativity deprives students any chance to be a part of todays fast developing societies.
Personal Finance Management?
First understand what Personal Finance is :
Income – Spending – Saving – Investing
If income is 100 – Spending is 50 – Saving is 50 – ideal Investment will be invest every penny of savings. How much to invest is dependent on Spending. Savings are important too. Money helps an individual in times of neediness.
Master Control you master mind and mastering mind makes you master world. – MCMW
Problem with Personal Finance
Personal Finance is not just about managing the money. It is directly related to happiness because a person can never take good decisions if he or she is not happy with life. Emotions play a vital part in Personal Finance and management including investing. Learning about Investing from books or courses will teach us about Financial Literacy but not how to implement the financial knowledge. THE ONLY WAY is to go out there and try out for yourself what works and what doesn’t.
Hello, if you are reading the blog you are already on the path to self-realisation
A community forum to learn more is Reddit Personal Finance