Intro to Financial Literacy
- Alice Nguyen
- Oct 4, 2020
- 2 min read
What is financial literacy? In simple words, understanding money and how it works. There is a common misconception that many people believe: money is wealth. Being wealthy to each person means different things, so here is a more accurate explanation: money is just a tool to measure wealth. According to Steve Forbes (Chairman and Editor-in-Chief of Forbes media), money provides us “the ability to trade with one another is how we achieve a higher standard of living.”
Have you ever thought of the importance of knowing where to put and how to spend money?
What a question. Everyone knows how to spend money, so do I mean using cash or credit card in exchange for something that you do not have? Yes. That does make a difference. There are some advantages of using credit cards that cash does not have, but I will go deep into that in another blog.
And where to put your money? It can be a challenging question to answer. Should you put it all in a savings account or save it under your bed? By the way, we are still teenagers; we do not have many options, so why would we care anyway?
Well, right! We do not have as many options as adults have. We can not invest in the stock market until we are 18, BUT we do have a choice to learn about it now or later on. As the title says it all, you should start learning about financial literacy NOW.
Why should you learn financial literacy as early as possible?
Knowing where to store and how to spend your money can make an impact on your life later on.
You know how to avoid falling into the pitfall that might lead to debt or worse. You will be able to make money by investing in stocks or other investment instruments. Sometimes, saving is not the best option.
You have more financial options.
You can earn more with smart financial decisions.
You know how to manage your finance.
Plus many more advantages…
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