What is financial education?

[raaman]

What is financial education?
Financial literacy is very essential to create a very healthy and also stable financial life. However, the lack of information and the knowledge that many people are unable to access makes it impossible for them to manage their personal finances well. Therefore, there is an urgent need for all the beginners to understand the fundamental principles of financial literacy and to learn the ways of improving their financial situation.
Everyone should understand the principles of financial literacy, debt management, investment, and also financial protection. Financial education is the process of gaining the knowledge and skills on how to handle the money properly, invest wise, manage the debt, and plan financials towards achieving the required financial success.

 

[Phantasm]

Financial education is the process through which people are trained on how to effectively manage their personal and financial resources. It is centred on budgeting and money management, savings and investments, debt management, credit management, financial goal setting, understanding financial products, tax planning, economic concepts, risk management, estate planning, consumer rights and responsibilities as well as financial empowerment. Key Components include budgeting and money management, saving and investments, debt management, credit management, financial goal setting and understanding financial products; tax planning; economic concepts; risk management; estate planning; consumer rights and responsibilities; as well as financial empowerment. Financial education plays a significant role in individual and collective welfare because it enables individuals to be informed decision makers concerning financial matters hence avoiding typical mistakes of finance leading to attainment of their set objectives.