Financial Education in Modern Society

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Introduction

When it comes to landing a job, financial education is usually just as important as academic qualifications in most cases. Even though schools consider this practical advice, they are more concerned with academics and do not do so. The subject of today’s research paper is financial education because finances are a source of concern for everyone, regardless their occupation, which may include oil experts, teachers, doctors, farmers, or computer programmers, among other things. According to popular belief, financial education does not involve the use of credit cards or loans, or the purchase of currency, bonds, or stocks (Ho and Daphnee 382). Rather, it entails the systematic planning and management of expenses, earnings, and the future, as well as the use of financial calculators to make financial decisions (Ho and Daphnee 382). To provide answers to the fundamental questions on financial education, the following can be considered: What exactly is one supposed to do with their money once they have earned it is something one should know. When it comes to achieving one’s financial goals, how much money should they set aside or put into an investment account each month? In today’s society, I believe the importance of financial education should be emphasized at the same level as other core subjects in schools, such as science and mathematics.

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To be successful later in life, students should understand when they graduate from high school, learning how to manage finances is as crucial as studying mathematics, biology, and other subjects during their high school years. When financial education is talked about, people refer to the process of discovering how money works. It includes an understanding of how money is generated and managed and how finances are invested and distributed to other people, among other things. People need to gain knowledge and skills that will enable them to make well-informed decisions about their financial resources. The outcome of such is that financial education does not exist. Back in the day, banks provided information to customers to win their business in the first place. The number of people who provide financial education services to the public has increased dramatically in recent years, owing to the emergence of financial educators outside of the banking industry.

Thesis Statement

Few people are knowledgeable with the notion of financial education, let alone the benefits of participating in a financial education program. A significant component of fraud prevention is investing in financier education. It occurs during financial education and should not be overlooked when attempting to prevent financial crimes from occurring. Investors who are well educated about their savings are less likely to be disappointed due to their investment decisions than those who are unformed. The data indicates a clear need for a more educated populace in the country, which is supported by the information. This research paper will cover various topics, including the significance of financial education and whether or not it is still relevant in today’s society (Solomon et al. 122). Further, the significance of the study is for students in educational institutions, wage earners, and the entire country, which will be considered.

Educational institutions should emphasize the importance of financial education to their students, which should begin with a fundamental understanding of the subject matter. It appears the future present significant challenges, for the children currently enrolled in school and those who live and work in developing world (Margaret and McClellan 89). In contemporary economic life and society, financial capability is considered one of the essential life skills a person can possess, if not the most important. This subject matter necessitates comprehensive financial education for students to make better financial decisions in the future.

Financial education can be beneficial to students during their academic years since it allows them to gain a better understanding of how the world works and how they can manage their money. Finance education begins at a young age, and those who start learning about it early will have a distinct advantage over their peers regarding future investments and employment opportunities. Incorporating financial education into schools’ citizenship curricula would be an excellent place to start. However, teachers can use the residency syllabus to teach their students about money management in the real world, which they can then practice in the classroom after they have completed the citizenship curriculum.

As a result, the role of financial education in the lives of those who earn a living is being investigated, as well as the importance of financial education to them. Each individual with a source of income, no matter how insignificant, should have access to some form of financial education and counseling at some point in their lifetime. Margaret and McClellan authored a book titled Budgets and Financial Management in Higher Education, published in 2018 and available online for purchase through the internet. Individuals who are taught about money management, according to the authors, are more likely to understand the importance of saving for retirement.

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After conducting an investigation, the Teachers Insurance and Annuity Association-College Retirement Equities Fund discovered that individuals with a highly educated approach to planning map their retirement assets. Further, they have three times the wealth of those who do not have a plan for their retirement assets (TIAA-CREF). It is also beneficial for individuals to be financially illiterate because it allows them to avoid bankruptcy and foreclosure, a long-awaited development in today’s society. As revealed by TIAA-CREF Financial Services Institute, people with limited financial knowledge purchase goods on credit, have fixed assets, and fail to make monthly payments on their outstanding balances, resulting in debt accumulation. That is the case since they do not make investments and are unable to comprehend the terms of their loans and mortgages, they are at risk of losing their properties.

Overall, financial literacy contributes to improving people’s overall well-being while also assisting in the long-term preservation of a country’s economic health. Customers who can make informed financial decisions, regardless of their financial situation, will spend their money in a way that improves their overall quality of life. As established, this has been contributed by the recent financial crisis. It also contributes to the economic stability of any country that is fortunate enough to have access to such a large pool of human resources at its disposal. The paper Contesting Financial Inclusion by Philip Mader, published in 2018, states that programs to educate people about financial matters are critical to reducing economic inequalities between countries worldwide, particularly in developing nations (Mader 471). Consumers must have a solid economic concept to understand which financial products are currently available on the market.

Robert Kiyosaki makes his statements based on economic theory, and I believe that they are sound and deserving of serious consideration on their own merits. As the author asserts, “When customers are well-informed, there is fierce competition as well as an efficient market” (Kiyosaki). Taking part in the quest for financial education, whether through seminars or online websites and learning the critical lessons, will position any country at the top of future growth and education league tables (Salas‐Velasco et al. 4098). In recent years, several countries, including the United States, have expressed an interest in personal finance.

Numerous nations have signed the treaty, including the United Kingdom, the United States, Japan, Canada, and Australia, among others. Individuals in these countries are being taught about personal financial management and budgeting through government-sponsored programs. The OECD (Organization for Economic Co-operation and Development) completed a project in 2003 with the primary goal of improving financial education in several different countries. In 2008, OECD established the Financial Education Research and Learning Center as a focal point for research, learning, and programs related to financial education. The center is now known as the Financial Education Research and Learning Center. In financial education, the International Gateway for Financial Education (IGFE) serves as a focal point for research, learning, and program development on a global scale.

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Conclusion

Regardless of whether or not they earn a living, everyone is now recognized as having a financial education, which is considered essential in today’s society. Furthermore, it has a positive impact on the overall economy. The public can now concentrate on the future and more fully incorporate financial education into learning institutions now that it has established how to obtain monetary instruction. As a result, future children must receive a solid economics education when they begin elementary school. After all, children are future business investors and political leaders of tomorrow (Daya and Mader 19). The following is a synopsis of the audience’s response to the presentation: The vast majority of people who wish to invest a significant sum of money are unsure of where to begin because they lack an understanding of the process.

Aside from that, many people may be unsure of whom to turn to for advice due to the abundance of con artists in the world. If a person continues to attend financial education seminars regularly in the future, they will gain a better understanding of finances. Since the internet contains a plethora of informational resources that are all freely available, people can also use the internet to further their education. Motivation is crucial and therefore, it is critical the information acquired on financial education should be shared with family members and friend. Based on one’s experiences, it can be guaranteed one will become a better investor in the future.

Encouraging financial education will significantly impact both individuals and their ability to achieve future success in their respective fields. Given that fraudsters prey on customers who are financially illiterate, monetarily literate people are required to make investments to protect themselves from becoming victims of fraudulent activity. For the citizens of a country to understand how to manage their finances, the market must be characterized by healthy competition on all levels.

Works Cited

Daya, Hasina, and Philip Mader. “Did demonetisation accelerate financial inclusion?.” Economic & Political Weekly 53.45 (2018): 17-20.

Ho, Maxwell Chun Sing, and Daphnee Hui Lin Lee. “School banding effects on student financial literacy acquisition in a standardised financial literacy curriculum.” The Asia-Pacific Education Researcher 29.4 (2020): 377-391.

Kiyosaki, Robert T. More Important Than Money. 2018.

Mader, Philip. “Contesting Financial Inclusion.” Development and Change. 49.2 (2018): 461-483.

Margaret J. Barr, and McClellan, S. George. Budgets and Financial Management in Higher Education. John Wiley; Sons, 2018.

Salas‐Velasco, Manuel, Dolores Moreno‐Herrero, and José Sánchez‐Campillo. “Teaching financial education in schools and students’ financial literacy: A cross‐country analysis with PISA data.” International Journal of Finance & Economics 26.3 (2021): 4077-4103.

Solomon, Gosaitse E., Trust Nhete, and Burman M. Sithole. “The case for the need for personal financial literacy education in Botswana secondary schools.” SAGE Open 8.1 (2018): 2158244017753867.

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ChalkyPapers. (2022, November 15). Financial Education in Modern Society. Retrieved from https://chalkypapers.com/financial-education-in-modern-society/

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ChalkyPapers. (2022) 'Financial Education in Modern Society'. 15 November.

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ChalkyPapers. 2022. "Financial Education in Modern Society." November 15, 2022. https://chalkypapers.com/financial-education-in-modern-society/.

1. ChalkyPapers. "Financial Education in Modern Society." November 15, 2022. https://chalkypapers.com/financial-education-in-modern-society/.


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ChalkyPapers. "Financial Education in Modern Society." November 15, 2022. https://chalkypapers.com/financial-education-in-modern-society/.