Financial Literacy

Financial Literacy

"Financial Literacy: its relevance for students and their education"

February 26, 2022

author

Author:

Voeun Vibolsreyleak


Financial Literacy is the ability to understand the various finance skills and financial management, investing your money, budgeting and saving. Understanding about financial management you can prepare your own budget and do the investment smartly and enhance our ability to manage your money.

The better understanding that we have about financial literature earlier, the better we can handle our finances creatively and profitably. The easy to understand meaning of financial literacy is how we can manage our money effectively. One of the ways to improve your financial literacy is investing for your future. Since we all know that education is an important investment for your future self.lacking financial literacy can be very damaging to an individual’s long-term financial success since you can distribute your finances accordingly and effectively.

Moreover, there are many advantages of having the knowledge of financial literacy such as help protect individuals from becoming victims of financial fraud, a type of crime that is becoming more commonplace. It includes learning and using a variety of skills, such as:

  • ๐Ÿ“ Understanding how to budget
  • ๐Ÿ“ How to manage your money and pay off debts
  • ๐Ÿ“ Having a good understanding of tax and how it affects your finances
  • ๐Ÿ“ Knowing the basics of credit and investment products and how to use them
  • ๐Ÿ“ Contributing to an emergency fund and planning for retirement

As teenagers, we should prepare ourselves with the knowledge of finance to improve our ability to manage money. One of many activities that indicate that we have great financial literacy is our ability to invest. There are many types of investment. One of which is the investment for education. As we know that education can put people on a path towards good health, empowerment and employment. It can help to build more peaceful societies.

When we talk about the students in the US, many of them take out student loans to continue their education because they know that with higher education, it can improve their own life, their family, and the society. If we take a look at Cambodian students, there is a huge gap between students who graduated from high school, and those who graduated from university.

High school graduates can solve this problem by taking out student loans as well to continue their higher education since there are few programs that provide student loans to students with low interest rates. High school graduates are encouraged to do some research regarding student loan programs that are suitable for them.

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