Why Financial Literacy Is Important?


Most people blindly believe a degree and permanent paycheck are the holy grail to achieve financial security and stability. But We all can agree that economy is very dynamic and complicated more than ever. We are witnessing how a new financial reality is forming, but most people are not prepared for it. For this reason, we need to start to invest in financial literacy as much as possible. To build our confidence and take control of our finance. This is the first article in a series of financial education articles. Here you will discover; Why is formal education prevents you from achieving financial freedom? Why is financial literacy critical? And how to make your first steps in financial literacy.

Traditional Education System Is A Scam

WHAT IS WRONG WITH THE EDUCATIONAL SYSTEM?

The eduaction In Information age same as in Industrial age

“Education is what remains after one has forgotten everything he learned in school. It is a miracle that curiosity survives formal education. ”

– Albert Einstein

We spend a large portion of our time and resources in education because we believe it will give us greater opportunities, money, and a better life. But in fact, the education system has not been created to serve our best interest or to make us rich. Therefore they don’t teach us financial literacy, how to create different income streams, nor give us the tools to develop as entrepreneurs or investors.

It is not a coincidence or mismanagement of education institutions. The core purpose of the educational system is to create employees. The first public schools were established in the 18th century during the industrial revolution. Their only purpose was to train the workforce for the factories. And this purpose has never changed since then.

Teachers that hired for formal education are highly educated, but they own the mindset of the poor. They lack financial literacy, they do not have real experience generating money from business or investments, and their survival depends only on the paycheck. With all our educators’ good intension, they can’t teach us how to be rich or prepare us for economic changes.

The obvious question is why nobody intervened to make a change in the educational system?
The government manages the educational system and dictates what to teach. That gives the government complete control over the citizens, to keep producing another generation of hard-working taxpayers. Those who run the government are highly educated, but they are lack financial education. For this reason, their only way to run the countries economy is to print more money and continuously raise taxes.

DOES EDUCATION IS WORTHLESS?

Education is important because it creates great professionals like; scientists, doctors, lawyers, accountants, engineers, etc. A great education is differentiating between poor countries with depressed citizens to developed countries that offer great opportunities and a high standard of life. But in the information era in the 20th century, we live according to the employee’s role book in the industrial age;

  • Go to school
  • Be an A+ student
  • Get a job in big corporations with a high salary, great pension plan, and benefits.

Although education is important, the educational institution is influenced by many interests. Hence we cannot afford ourselves to trust what we have learned in school, even if you are a highly paid PRO. Because employment is deeply affected by economic changes and evolving technology. And Corona Virus is the living proof that no employee is immune to its consequences. So everyone’s main mission should be to invest in financial literacy as soon as possible.

Financial Literacy

What Is Financial Literacy?

Financial literacy is a combination of financial education and skill set which allows managing financial resources effectively.

why financial literacy is important ?

“If you don’t find a way to make money while you sleep, you will work until you die.”

-Warren Buffett

The point is not how much money you have in your bank account, but what you do to make your money work for you.

There are endless high paid movie stars, sports players, normal people who earn a high salary, and those who win the lottery or receive heritage. But due to a lack of financial education, they lose their money and become poor again sooner or later.

Financial literacy is extremely important for the following reasons:

  • You will know what a real asset is and what is a liability. With that, you will be able to identify all the liability that is classified as assets that ripping you off for years.
  • You will begin to read and manage your own financial statement, it would show you why there is nothing left from your salary and how you can fix it.
  • You will never take financial advice from bankers and financial advisors who earn their money from commissions. You will find a real financial advisor that lives by what he preaches and make you rich.
  • You will make money work for you and not waste your time work for money.
  • you will start to think and act like rich people.

All these examples are just the tip of an iceberg.

how to become financial literate ?

“Success lives clues. Study people, you admire or want to be like.”

-Tony Robbins

To start with the real financial literacy the wealthy people live by, you have to get rid of the poor mindset you build over the years. We know you are so excited to start with mechanics, roll up the sleeves, and start making money. But before you do any financial decision we strongly recommend you build a proper mindset and solid financial fundamentals.

The best mentor for this first stage is Robert Kiyosaki because he is started from the same starting point as we are. He grew up in a middle-class family of educators who lived from paycheck to paycheck. But he refused to follow the footsteps of his family because he wanted more for his life. Thanks to the mentorship of his rich dad he succeeded to turn to a successful businessman and investor. So he knows exactly what journey you should pass and how to build a gradually mindset of rich people.

Rich Dad Poor Dad

ROBERT T. KIYOSAKI

The number one book we recommend to read at the beginning is, Rich Dad Poor Dad.
(explained in greater detail in the article No.1 Rich Dad Poor Dad). Robert .K explaining ideas as simple as possible. The book is written in simple language, so that everyone, from all kinds of educational backgrounds, can understand financial ideas. The book is exceptional because it teaches revolutionary principles of wealth creation that passes only in rich families. That book inspired so many people to take control of their financial reality. so we believe it will be a valuable investment for your time.

Why We Want You To Be Rich

Presedent of usa donald J. Trump

Robert t. Kiyosaki

For so long, we developed a destructive mindset of:
I Deserve It“, ” The Government Need to Take Care Of Me” , ” My Employer Need To Take Care Of Me“. That mindset spreads in the speed of light like a toxic virus.
That mindset made us passive, lazy, and needy that during economic changes and crises, we lose our money and dignity.
For this reason, the president of the united states, Donald J. Trump, and Rober Kiyosaki decided to unite together to help us. Because they believe it’s possible to solve financial problems only with financial literacy. So in this book, Donald J. Trump and Rober Kiyosaki teach the mindset of rich people.

This was the first article in a series of financial education articles.
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