Managing your own salary can be a big challenge for many people. If you’re one of them, you’ve probably got caught up in how some people who earn the same thing you can save up and accomplish a lot more … It may seem like envy, but it’s actually an important thought to take the first step in search of a better yield.
This first step is to recognize that you need help learning how to save more and better. Financial education can not only rid you of the “red” but also get you out of the “hostage” situation of the accounts, to finally have an effective economy to fulfill your dreams!
What is financial education?
Financial education is learning to be aware about the value gained, the amount spent and the items (products and services) that are necessary or not in your life. It also involves re-evaluating your personal view of money by changing the standard mode of thinking. The goal is for you to be very clear about what you will do with the money you earn and start to value every penny before you spend it!
It is important to keep in mind that it is not a matter of not spending anything and living just passing will! A better balance is enough to avoid making exaggerations, especially when your salary is tight … This is how, little by little, people fall into the “trap” of consumption and return to the cycle of indebtedness every holy month!
This practice of spending small amounts over the course of the month in different places can be common in single life, with lesser commitments and responsibilities … Now, when there is a family to support, financial education becomes vital, as exaggeration in one day may represent the next day the lack of essential products for a child or elderly person you love!
What is family financial education?
Family involvement is therefore very important for your financial education. Group growth favors your personal commitment and your family’s dedication, often reducing the stress generated by constant indebtedness.
However, the biggest problem with spending is that when there are children, they have no income to help balance the accounts and generate significant spending needs for the already tight household budget …
Here’s the tip: separating what is desire and what is need for consumption is the basis for family financial education. Trendy toys (especially the most expensive ones) for a child who plays a lot more on a tablet or cell phone may be a lot more a wish than anything else …
Family financial education can also have long-term and much greater value goals when each family member contributes to a common goal. A commendable example is saving money in savings or investing to earn a higher income and invest in parenting or retirement.
Educating yourself financially is even possible to climb social class, especially if you learn to make good financial investments!
How to do child financial education?
Getting a child or teenager to understand why they spend, needs and wants, learning from an early age how to manage money can not be easy, but it is possible with lots of talk, examples and hands in the dough!
Some schools already promote child financial education and the state’s goal is for the initiative to be expanded in schools across the country. You can apply child financial education to children from the age of 6, because at this age they often have the notion of exchanging the commodity for money. Here are some tips to get your child involved:
Use examples from her universe, playful;
Make her separate toys she uses and donate those she no longer uses;
Buy children’s books on financial education;
Give me a piggy bank and a little soup;
Talk about how she spends her allowance;
Orient to save money to buy something bigger;
Do not buy everything she asks for;
Help the child separate desires and needs.
The goal of financial education is not to get rich, but rising social class is a positive consequence that can happen, especially if you learn to save and, at a later stage, risk some long-term financial investments and higher returns!
The key question always passes through self-control, in the eternal battle between your wishes and needs, yours and your family! The important thing is to get a new view on spending, learning to plan the finances for a better future, always focusing on the medium and long term.