Do You Think That It Is Important to Be Financially Literate (Essay Sample)

Do You Think That It Is Important to Be Financially Literate?
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Do You Think That It Is Important to Be Financially Literate?
Realization of the significance of financial education knowledge is critical because it influences a person's level of financial literacy. The lesser one's awareness, the lesser one's financial knowledge. People aged five to 25 should be subjected to financial education awareness. Money management education should not only be provided to grownups, as well as to kids as younger as five years old. Parents should instill multiple income streams in their kids at an early age. Thus, this is done to raise awareness regarding the significance of financial education knowledge and to prepare children to manage and control their finances in future life. Arguably, financial literacy is the core foundation knowledge of educating people on investing, saving, and debt to facilitate the overall sense of financial self-trust and well-being.
Firstly, financial literacy education teaches people on low incomes and certificate holders how to save their own money until it accumulates to a significant amount invested in other sectors. The government should provide more free platforms for individuals to explore financial education courses (Prasad, 2021). Individuals with significantly low earnings may not be able to afford to undertake financial education classes. They most likely have enough funds to sustain only essentials and related costs such as rent, utilities, food, and so on. When compared to the university level, the certificate level has less exposure to financial education. At the high school level, there are no financial education programs or courses. As a result, the government should provide more free learning platforms for individuals to learn financial education courses.
An increase in public awareness of the significance of financial education can have a wide range of positive consequences, such as enabling individuals to create better and more secure financial decisions. Moreover, it avoids being taken advantage of by the financial asset agents (Lusardi, 2019). Individuals well-versed in financial knowledge will understand how and where to spend their hard-earned money most wisely. Before investing their funds, these individuals will design and execute plans and research. They are continually updated with the most recent information to remain aware of opportunities and challenges in the financial sector or markets.
Individuals' financial literacy levels rise as their awareness of the significance of financial literacy grows. People with limited financial education skills are more likely to encounter financial issues such as retirement, expenditures, borrowings, and savings (Fazli Sabri & Tze Juen, 2014). Financial management knowledge is extremely important to learn. Poor financial management skills result from a lack of financial literacy. These are most probably the product of individuals experiencing undefined financial objectives and not being fully equipped with the sufficient financial skills and knowledge to attain them. Consequently, such people failed and had to pay the price of their consequences.
In the meantime, people with good financial knowledge can develop a financial strategy and access loans. Such people clearly understand their financial objectives and attain them within the specified time frame (Murugiah, 2016). According to the literature, it is affirmed that wealthy individuals have a significant proportional financial literacy level. To be fruitful in budgetary control, one must have a strong understanding of accounting literacy.
Additionally, increased awareness can help individuals avoid being duped by any financial institution’s clerks. Individuals with substandard financial education knowledge or awareness are more likely to be scammed and deceived because they are unfamiliar with existing fiscal merchandise in the market (Bhushan & Medury, 2014). Multiple pieces of research, for instance, have featured such fraudulent transactions or allegations of corruption in which an individual is confined to non-existent borrowings. Therefore, a lesson should be learned from such evident cases, and people should only borrow out loans from authorized and accredited banking institutions.
In conclusion, financial literacy is the core foundation of educating people on investin