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Financial Education-Awareness Dilemma When it comes to financial education, the majority of today's ...
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Financial Education-Awareness Dilemma
When it comes to financial education, the majority of today's youth will regard it as a necessity for certain specific people who want to make their career in the financial world. 1. Actually, elementary financial education is a must for all, as money transaction is an essential part of our day-to-day life.
Suppose you have $100 in a saving account that pays simple interest at the rate of 2%per year. lf you leave the money in the account, how much will you have accumulated after 5 years: more than $102, exactly $102, or less than $102? The test might look simple, but only half of the people surveyed gave the correct answer.
2.The explanation goes as follows: People with low levels of financial literacy suffer from that lack of knowledge at every stage of their lives. Researchers on this subject say people with a high degree of financial literacy are more likely to plan for their retirement. 3.
On the contrary, people who have a lower degree of financial literacy tend to borrow more, accumulate less wealth, and pay more in fees related financial products. They are less likely to invest, more likely to experience difficulty with debt, and less likely to know the terms of their mortgages and other loans. Thus, the cost of this financial ignorance is very high. 4.
What is the solution? 5. Like reading and math, financial education must become part of the core curriculum in our schools. Likewise, parents should engage in regular, constructive conversations about money matters. This will give their kids a solid foundation for financial well-being, which will keep on giving returns throughout the course of their lives.
A. Financial education must start early.
B. However, they miss an important point.
C. Why does each of us have to face a financial challenge?
D. Why does financial literacy matter so much in our society'?
E. Rich people are generally better educated on financial management.
F. Besides, these people have more than double the wealth of people who don’t.
G. For example, they frequently make late credit card payments, overspend their credit limit, etc.
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