Knowing Finance and Economics is Important

Knowing how money works is probably the most important skill every person should have. Especially basic finance and economics. These will help a person lead a more cost effective life. And probably set him up for an earlier retirement than his peers. In our daily life we spend our money in different places and most of the time we are not able to keep track of where we spend and how much we spend. This is true for me as well. Sometimes even I lose track. This results in more money spent than earned. And in consequence before the end of the month we burn through all our allowances or salaries. We get, and then we end up lending or simply being a miser for the rest of the month or at least till the next paycheck. And obviously this saves no room for savings.

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While an educated person on both finance and basic economics is more often able to save somebody and is more often able to make a budget of all the possible spendings and he can spend accordingly. This also helps them keep track of his spending and earnings. And the economics helps him judge the market around them and also understand the financial situation of the society he's in. It will help him make more future proof and useful investment decisions which can boost his earnings and it can stop him from spending in the wrong direction to boost his savings.

A large number of people around us do not have these ideas and information in them so they end up spending in an unplanned manner and they end up with less or no money at hand more than often. Due to this, most people earn financial Independence quite late in their life and some people just never become financially independent. Also, if someone doesn't understand the basic economics, he can't make proper investment decisions and he cannot use his money to increase his earnings. But that would still be tolerable as long as he is not losing money but bad financial decisions often cause people to lose all their savings if they have any. That is why I think schools around the globe should incorporate basic financial and economic teachings in more Junior classes than they are now. So that people can learn how to spend and how to save in order to achieve a better life financially. As I was scrolling backwards, Week 116, Edition 01, Financial Literacy caught me eye and I thought to write about it.