Monday, January 08, 2007

Financial Literacy is a Life Knowledge

Financial Literacy is one of the most important survival knowledge that one needs to know, and this is increasingly so. It is not a subject for the rich or for the poor, its for everybody.

According to Rich Dad's Prophecy, Robert Kiyosaki stated that financial education is crucial for every individual. While you might be investing, you are not necessarily an investor. You might have entrusted a 3rd party to help you invest, but without the essential knowledge, you will not be getting the most out of an investment.

Many people belong to the category I call "sheeps". When one goes into investing, the whole flock follows. When you ask them if they know the profile of the company that they are investing in, they might give you a blank stare and tell you that their agent told them it was a good buy. While some may have earned from investments blindly, others do not.

I have some friends who are earning a hefty sum of money every month. They are spending more and more because they are not keeping track with their personal finance. Splurging on luxorious liabilities will create a drag in one's financial health.

Financial Literacy has not been emphasised in schools. I believe that children should be equipped with basic financial literacy so as to be prepared for a better future ahead. And there is a lot more to go on spreading financial knowledge...

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