Education is light. It gives a broader and deeper perspective about issues and helps to broaden and re-orient the mind. The effect of education also becomes evident overtime as the difference between the educated and uneducated mind begins to show in attitude, actions and ultimately results. It is for this reason that many go to school to acquire knowledge and skills to become better persons.

Financial education is no less. While we learnt several subjects in school, this crucial knowledge that relates to our everyday life is missing. This is probably the reason why many school drop-outs still succeed, as the core of financial independence is not necessarily taught in school. Many struggle financially while others learn it by experience. Financial education helps you to avoid struggle and positions you for better financial achievements. Let us take a look at its importance.

1. Financial Audit: The first part of any journey is to know where you are. It is alarming that many people do not know how much they spend monthly. Little wonder why the expense always exceeds the income, leaving them in debt. Financial education helps you to do a proper audit of your income and expenses in other to know your present financial position.

2. Financial Goal: Imagine a football match without a goal post. The players will run around for ninety minutes without achieving a measurable result. The same applies to many people financially. Financial education helps you to set clear financial goals. This specifies where you want to be financially at different stages of your life.

3. Financial Plan: Goals are achieved through plans. They help you to know how to hit your target. Financial education shows you alternative routes through which you can achieve your goals. This could range from various financial management techniques to diverse streams of investment. In addition, it also helps you to do a periodic review and re-strategize.

4. Financial Discipline: While many people may be conversant with the above points, they still do not do them or fail to follow-through. This is because the crucial discipline required to achieve this is missing. This is where financial coaches or instructors are needed to provide the necessary support systems.

This is just an introduction into the many benefits of financial education. Finance is a crucial part of our everyday life, whether as individuals, family or business. This should not be left to chance or learnt by experience as it could be very costly. I believe it is high time you took your financial education to the next level and became a better manager of financial resources.

Thanks so much for the insight.

You are welcome.