Personal finance literacy is very low in many developed countries, especially in the United States and Canada. When the national savings rate is between three and five percent and consumers continue to tack on debt, it suggests that consumers don’t necessarily how to save or invest.
Many have called upon the education system to establish a personal finance course throughout elementary and secondary school. However, considering that government is the worst at managing debt, is this really a prudent concept?
Wise Bread published an article on Daily Finance and came up with five financial lessons every student should understand by the time they’re in kindergarten. It’s likely a large number of people have failed at these rudimentary lessons, but they’re still worth writing about.
1. Money represents your labor (mind or muscle).
2. Spending and investing are two completely different things.
3. Consumer credit is a very, very dangerous tool for the average person.
4. Wants and needs are also two completely different thing (food = needs, $400 ripped jeans = want).
5. Money can’t buy happiness, but it can buy security and choices.
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