Here are 10 answers to why financial education is important
April is like the Super Bowl of Financial Literacy with educators and students alike doubling down on their efforts to teach/learn the "right" way to handle their personal finances. Recently I was able to participate in a Twitter Chat with Experian where I shared insights into issues around different financial topics. I'm including the Q&A below so that it might inspire others to chime in or take action.
Q1: Why is financial education important?
A: Financial education is important in order to be aware of and make proper use of the tools relating to managing your personal finances.
Q2: What financial topics should a person have knowledge about?
A: Budgeting, savings, investing (short and long term), and Credit management.
Q3: When is it appropriate to start teaching your kids about personal finance?
A: As soon as they are able to understand the value of one thing in exchange for something else. During formidable years it's important to structure what that looks like so we don't perpetuate a cycle of trading TIME for MONEY.
Related: 5 Lessons I Learned About Entrepreneurship By Overcoming Poverty
Q4: How can adults learn more about personal finance?
A: In my TEDtalk my call to action is "Build a team!" Adults can learn more about personal finance by surrounding themselves with mentors and capable others in the space to help educate and inform them on processes/strategies that make sense for them.
Q5: Where should financial education be taught?
A: Robert Kiyosaki says that the European system of education was designed to create employees & soldiers; people who take orders. I don't think it's enough to rely on public education to teach finlit. It should be taught at home, in religious and community centers.
Q6: What resources are available to help people learn about personal finance?
A: There are books, podcasts, articles, courses, coaches, and free events via banks and financial institutions. The information is out there. The challenge is getting people empowered enough to seek it out and take action!
Q7: How can you promote financial education in your community?
A: By releasing the feelings of guilt, anxiety, & fear around managing finances and by having advocates continue to raise awareness by telling their story and relating their expertise to others. "There are no guru's just ppl who have mastered their situation. "
Q8: How can being financially literate help you improve your credit?
A: I always like to refer to credit as a "game". You learn the rules...then you make the rules work for you. Financial literacy is doing just that. You can't play the game well if you don't know the rules.
Related: 7 Business Takeaways You Can Learn From Monopoly
Q9: How can financial literacy help you achieve your financial goals?
A: Financial literacy gives you a roadmap to first determine what your goals are. There are people who simply don't know what they don't know. Financial literacy can give you a birds eye view (and a roadmap) to what's possible on your path to determine what's possible for YOU.
Q10: What do you feel is the most important financial literacy subject?
A: The most important subject is actually an often neglected one and that is cultural competence related to mindset. If we are talking above the level of understanding our audiences can connect w/ or digest then what are we doing? We need to understand their mindset.
There we have it. 10 questions supplied by Experian with answers from yours truly on #financialliteracy . If there are any questions YOU have an answer to that build on or is different from mine please feel free to leave it in the comments.