Site icon CASHPLAY

Finance learning – why is it important and how does it affect our lives?

finance learning, piggy bank, money box, books

Acquiring and expanding knowledge about finances is a process that takes time and commitment. Fortunately, there are many ways in which we can acquire such knowledge. Nowadays, learning finance is a key skill that helps you achieve financial stability and independence. Thanks to it, we can increase our savings, avoid debts and plan our financial future. However, this is not an easy task, because it requires us to have not only theoretical knowledge, but also practical skills. In this post you will learn what financial education is and how you can learn money management. We also discuss a game that can speed up and facilitate the learning process.

What is financial education?

Financial education is the process of acquiring knowledge and skills that allows you to understand how money works. It also allows you to learn how to properly manage your personal finances.

As part of financial education, we learn various issues, which include, for example, budgeting, saving, investing and retirement planning. Thanks to gaining this knowledge, we can have control over our finances and achieve financial stability. This, in turn, has a positive impact on the quality of life – both now and in the future.

There comes a time in everyone’s life when they become interested in this topic. This is usually because he is starting to realize how important it is to know about money.

Financial education in the world

Let’s start with the fact that the issue of financial education in schools varies by country and by educational system. In some countries (such as the United States, Canada, and Australia), there are educational programs that teach elementary and high school students about money management, saving, and investing. In other countries, however, this topic may be treated more briefly or not included in the curricula at all.

It is also worth noting that financial education (if it exists) usually focuses on the theory, not on the practical aspects of financial management. Students rarely have the opportunity to put their knowledge into practice in real financial situations. This prevents them from developing the practical skills they will need in everyday life.

Also, the degree to which children learn about finance can vary from school to teacher. Some schools may offer specific lessons on financial education, while others may be limited to basic money math concepts.

Image by Freepik

For this reason, not all children receive enough financial education to do well in adulthood. Lack of knowledge about financial management can lead to debt problems, lack of savings or ineffective investing. That’s why it’s important to develop financial awareness from a young age and encourage the learning of basic financial skills.

It is true that non-profit organizations, companies and financial institutions are taking steps to increase financial awareness among young people. However, there is still much work to be done to ensure proper financial education for all children in the world.

All things considered, it is often best for parents to take care of their children’s financial education. What we mean here is not relying on a school that can’t handle it. Parents can therefore take care of introducing their children to the world of finance on their own.

Financial education of children

Financial education of children is extremely important, it is best to start it from an early age. An early introduction to basic financial concepts can help you build healthy financial habits. Besides, it makes it easier to develop money management skills. You may be wondering what to pay special attention to when it comes to financial education for children. Below we will discuss the most important aspects of this issue.

First of all, you should teach children how to create a budget, consciously plan expenses, and ultimately also save for the future. Help them understand the difference between needs and wants and the value of saving money. Also, explain to children what are the consequences of debt and irresponsible use of loans. Help them understand the importance of managing their finances responsibly and avoiding debt.

Another issue is teaching children how to open a bank account, use a debit card or how to operate an ATM. Introducing them to basic banking concepts will help build the foundations of financial independence, which will certainly be useful in their lives. It will also be a good idea to explain to children the basic financial concepts, which include, among others: income, expenses, interest, investing, credit, inflation. You can learn together using examples from their daily lives.

In addition, you can encourage your children to earn money on their own through small jobs, such as looking after animals or helping neighbors. Also, let them make their own financial decisions, e.g. in terms of shopping or choosing what to spend their savings on. Encourage children to think entrepreneurially and develop self-employment skills. You can inspire them to start their own small business, e.g. selling homemade baked goods or handicrafts. An interesting idea may also be to familiarize children with the concept of financial planning in the long run. Help them set goals, such as saving for major purchases, college, or their own apartment.

Finally, we must point out that children’s financial education should always be adapted to their age and stage of development. It is important to use practical examples, involve children in interactive activities, board games or simulations. They will help them understand complex financial concepts in an accessible and interesting way. Also remember that it is worth talking to your children about finances, preferably in everyday situations, such as shopping, paying bills or planning a vacation. In this way, children learn how to make informed financial decisions.

Ways to help you learn finance

You certainly know that finance is an area that is extremely important in the life of every person. Without financial knowledge, it is difficult to achieve financial stability and manage your money wisely. In today’s world, there are many ways to expand your knowledge of finance. In the following part of the article, we present some of them.

One of the ways that will help you learn finance is to use publicly available knowledge and online materials. On the Internet, we will find many guides, articles and courses that will help us expand our financial knowledge.

There is also no shortage of blogs on the web that deal with financial topics. You will easily find many blogs run by experts who share their experience and knowledge. They are great as an alternative source of knowledge.

Image by storyset on Freepik

Another way is to participate in financial training and workshops. Such training is usually conducted by experts in the field of finance. You can take a lot of knowledge and specific tips from them, because they share their experience. There are many companies that organize training and workshops on finance. It is worth taking advantage of this opportunity and taking part in such training.

Don’t forget about books and other publications on finance. In bookstores we will find a wide selection of books that will help us learn finance. Good books on finance are the basis for expanding your knowledge. The authors of such books share their experiences and knowledge that can help you understand how the world of finance works. Among the recommended titles are, for example, “Rich Dad, Poor Dad” by Robert Kiyosaki.

It’s important to start with simple steps, such as budgeting and controlling your spending. This will give us a better overview of our finances and help us achieve our financial goals.

Learning finance in the game – is it even possible?

It is possible that you are not aware that there are educational games that allow you to gain knowledge and skills in the field of financial management. These types of games can be an effective way to learn, especially as they allow you to understand complex financial concepts in a simple and fun way.

CashPlay is the perfect solution for those who are looking for a fun way to learn. CashPlay is an economic and strategic game that allows the player to develop his own strategy, useful not only in the game, but also in real life. In the quick play mode, the player is given specific tasks that he must complete in order to progress to the next stage.

The CashPlay game can therefore be an excellent warm-up before the real financial challenges that we face every day. In addition, you are guaranteed that thanks to it you will learn how to manage your budget effectively. Remember that the most important thing is that money works for you, not you for them – as Robert Kiyosaki, the financial guru, repeats.

Think this game will be perfect for you? Sign up for CashPlay and start developing your financial intelligence.

Summary

In conclusion, learning finance is extremely important nowadays. However, there are many ways to learn money management. Starting from using the knowledge available on the Internet, through participation in training, to reading books on finance and even games. It’s important to start with simple steps and gradually develop your financial management skills.

Our examples also included an online game. You must remember that games alone are no substitute for a comprehensive financial education. However, they can be a valuable aid in the learning process.

Main image source: Image by fabrikasimf on Freepik

Exit mobile version