The importance of financial education

Financial education plays a very important role because it provides all kinds of information regarding personal finance and how it improves the relationship with money, in order to achieve individual savings and growth goals.

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In addition, it is an educational proposal that has many benefits, including the inclusion, protection and independence of people and their income.

What is financial education?

La financial education is education about how money is managed in the world. It aims to promote learning and understanding of finance so that people can make informed decisions about how to manage your money.

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One of the most important goals of financial education is inclusion, because it is a matter of providing everyone with information on how to manage personal finances and the financial instruments that can be used to improve the relationship with money and take care of savings.

The importance of financial education

Financial education is very important for several reasons. First, the information provides greater independence to people to dispose of their money as best suits them.

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Second, financial education favors development of one's own capacities in money management, making it possible to achieve personal savings and investment objectives.

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In addition, this type of knowledge includes everything that concerns consumer rights, obligations and benefits. This gives financial education even more value, as it gives people tools to defend themselves before different banks and protect their rights.

Financial Education Tips

Some tips What can be learned from financial education are:

Record expenses

Carry a Record of expenses that are available throughout the month. Recognize what are the fixed expenses and what are the variables to get an overview of what percentage of income can be saved.

Create a monthly budget

Hand in hand with the previous point, create the presupposed It helps to visualize how much money is available after paying essential expenses and what it will be available for.

Save a percentage of income

A savings goal will help us achieve certain objectives and a certain level of comfort when it comes to having our money.

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Make sure that a portion of your salary goes to savings account and not to be used for anything else.

Learn about ant expenses and reduce them

What are the Ant expenses? They are the small expenses or “tastes” that you have throughout the day.

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These are consumptions that in principle do not seem to affect the economy itself, but that added up throughout the month result in a significant figure that could be reduced.

Investing and diversifying investments

Once all the expenses have been paid, and the savings have been set aside, you can consider the option of Invest the money.

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Implementing various investment tools can generate more return on your savings.

Make informed, non-impulsive decisions

Get informed. Compare prices, avoid consumption with high interest rates. If you don't have a lot of extra money, indulging in compulsive purchases can hurt your finances.

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Before investing in any instrument or any entity, learn about it. Make sure you don't fall for scams or fraud.

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