Visit: https://www.savebly.com Financial education is important and is constantly evolving. Together with business education, both should be the basis for learning how money and business work. Importance of financial education for life The financial education should be understood as a broad set of guidelines and clarifications on proper postures and attitudes in the use and planning of personal and family financial resources. It is aptitude, preparation to deal with concepts and financial issues (income, expenses, interest, business, investments, etc.). It is the ability to know how to use money as a tool to make life better, more creative, more productive and more balanced. What is the purpose of financial education? The goal is to change the thought of accumulating more and more money to the idea of living better and better. The important thing is that the person prioritizes satisfaction with consumption. Living well does not mean buying another cell phone or another car, but enjoying life. Principles of financial education The financial planning is essential to ensure future be farsighted and avoid situations of risk and need. However, having more money does not mean being happier or having a better quality of life. The important thing is to plan to have enough, without consuming with exaggeration and waste. Financial education should be part of the basic education of every citizen and its principles should be transmitted from parents to children, as is the case with the principles of ethics and values, and the school should have the role of deepening its concepts. Unfortunately, the opposite is taking place. Children are learning at home the wrong way: parents who do not carry out any financial planning, who live in debt, who do bad business, because they do not have the basics of finance . And so they pass the bad example to their children, in a vicious circle, which needs to be interrupted by financial education , which needs to be acquired now, through the educational system or through individual effort, through courses, lectures and / or reading specialized literature. The lack of financial education creates stress, sleepless nights, triple worries, among other problems. Therefore, we need to be financially educated to manage our personal and family finances well , to do good business, to value money, to invest wisely, so that we can build a worthy future for ourselves and those for whom we are responsible. The five principles of effective financial education are: Meet the individuals and families receiving services Provide actionable, relevant and timely information Improve key financial skills Build motivation Facilitate good decision-making and follow-up5 Financial Education principles to adopt as a habit Applying the basics Of course, there is no right way to provide financial education, just as there is no right way for everyone who must lead their financial lives. Many approaches can work, reflecting the diversity of circumstances, opportunities, aspirations and ingenuity of people who help people take steps to improve their financial well-being. Know your audience Different types of programs that aim to increase financial well-being are necessary for consumers in different situations. Rather than taking a single approach, financial education programs must match the specific circumstances, challenges and goals of the people to be addressed. Provide actionable advice Always connect consumers to knowledge in ways that persist. People are more likely to absorb information if they are concerned about an important decision they must make soon and include concrete steps to be taken. Focus on key skills These include knowing when and how to find reliable information to make financial decisions; know how to process information to make financial decisions; and knowing how to execute financial decisions. Finding a way to motivate Knowledge, skills and opportunities only lead to action when a person feels that he is important. Financial education can reinforce attitudes that help people stay motivated to pursue their goals. Help people to focus on their own standards and values, not external influences. This will help them to persevere and make sure they can reach their financial goals. Make easy decisions Situations that people face influence their financial actions. Financial education can help contextualize individual situations and facilitate navigation and leveraging influences in their surroundings. Financial life cycle: saving and accumulating assets If people change with age, so do their financial needs. When analyzed from the financial point of view, the life of each individual can be divided into phases, where the needs and objectives are different, gradually changing over time. An example is the pattern of income and expenses. There are phases in our life, for example, when expenses go up a lot. Income also varies, as we move from a situation of lower wages at the beginning of a career to a much better situation in middle age, when most reach their professional peak. However, not only do income and expenses change over time. The need for savings is also changing, allowing some periods of our life to be ideal for accumulating a financial reserve.