What is required for financial literacy. What is financial literacy and why study it from school. Robert Kiyosaki and his theory of financial literacy
We create own capital or how to become rich from scratch in our time.
The habit of a reasonable attitude to money must be developed in children from an early age, experts believe. We have compiled a few tips to help you teach your child to take care of personal finances.
1. Pocket money is important
If you plan to teach your child a literate attitude to money, not only theory is important, but also practice. And here you can not do without pocket money. Their size should depend solely on the size of your income. Even if it's 200 rubles. per week, for this amount you can both buy ice cream and save up for a mobile phone.
2. Saving is more profitable than spending
Explain to the child that the money that he does not spend today on the next purchase can bring him profit tomorrow. It is important that the child strives to make his monetary assets work. Tell him about deposits that make a profit when no money is spent. Even if it will be several hundred rubles a year from a small amount of money invested by your child in a deposit, he will be convinced by personal example that the money saved is profitable.
Give an example: one thousand rubles in a deposit at 10% per annum in 10 years will “earn” another thousand rubles.
As your children grow, teach them about other, more profitable ways to invest, such as the stock markets.
It makes no sense to overpay for trends and brands
Tell your child that there is nothing wrong with buying what he wants. However, there is no reason to overpay for the desired item. Explain that there is no point in buying the latest LEGO game " Star Wars”only because you want to get it for your birthday. In a couple of months, when the popularity of the game will decline, its cost will also decrease.
The same can be said about branded items. There is no reason to pay twice or three times more for a product just because it has a famous logo on it. Explain that the main requirement for a thing is its quality, and often good jeans can be bought for less money, but without a well-known logo of a particular brand.
However, if your child’s love for brands is ineradicable, turn his controversial spirit to good.
“The desire of a child to get a prestigious gadget can become good example for practical training financial literacy- says Andrei Paranich. - Parents can invite the child to assess how realistic this financial goal is and how you can achieve it on your own. For example, to offer to calculate how many months he will save up for a smartphone model he likes, setting aside part of his pocket money, how the accumulation rate will increase if he places money in a bank deposit, to think about what other financial receipts can accelerate the achievement of this goal. For example, remuneration for performing additional duties around the house or self-employment.
After such calculations have been made and a financial plan has been drawn up, it makes sense to invite the child to think about alternatives - what can be bought with the accumulated money instead of this smartphone. It is quite possible that the child will be attracted by the opportunity to spend what he has saved up on a new bike, a summer trip with friends, and buy a simpler smartphone with the remaining funds from the savings.
4. Saving is more profitable than borrowing
This is probably the hardest thing to teach. Needless to say, not all adults will agree with this rule.
According to the United Credit Bureau, only in August current year banks issued to the Russians 2.25 million new loans totaling more than 288.7 billion rubles. Compared to the same period last year, growth in quantitative terms amounted to 4%. Well, it’s easier to correct your mistakes by teaching your child to own example. Tell him how expensive borrowed funds are. Explain how, using the example of a deposit: if you take a loan of 1 thousand rubles. at 10% per annum, then you will have to return at least 1,100 rubles in a year.
It does not hurt to explain this skill and practice. If your child wants to buy some thing, but there is no money for it, offer to lend him the necessary amount at interest. When he realizes that he must deprive himself of ice cream in order to return the interest, perhaps interest in borrowed funds he will lose.
Friends money is none of your business
You are probably familiar with the situation called "Mom, I need a tablet like Vitya from my class." You should not follow the lead of either your child or society. If you cannot afford Vitin Tablet, do not accumulate debts, stepping on a slippery slope, it will only get worse.
Encourage your child to focus on themselves and their own resources. This is important if you want them to spend wisely and be content with what they have in the future.
Anna Wolf, psychologist: “A well-structured attitude towards money will help a child calmly accept that classmates wear fashionable things or use an expensive phone, even if he does not have such things.
If a child is jealous of classmates, then it is important to show that his experiences are important to you. For an adult, this is a signal that the child does not fully understand the values of your family. In this case, it is difficult for him to defend them in front of his classmates in a competitive situation. Before you talk about your attitude to this situation, clarify it. Find out why it is important for him to be like - to communicate with classmates on an equal footing, or to prove to them that he is also loved in the family. He may have other reasons for wanting the same thing. Perhaps he needs to learn how to communicate with interesting people for him, regardless of the difference in financial situation. Another thing is if he does not yet understand the differences in the financial capabilities of people and connects your refusal to buy him an Apple phone with a bad attitude towards him.
6. Time is money
Teach your kids the value of time. Explain to them that it is not worth, for example, to sculpt more clay figures for days on end than they will be bought at the school fair. It is important that the child understands that it is not worth spending efforts where they will not pay off. At the same time, it is important for him to understand that he needs to work hard in order to earn his living. But the work must be well-paid. It is important to teach your child not to be afraid to ask for more for their work if they deserve it.
If you manage to convey the above recommendations to children, they will grow up to be people who know how to value themselves, their time and money.
6 Steps to Effective Financial Management5 Ways to Save Money on Children's Books9 Apps to Manage Your Finances
Municipal budgetary educational institution
Primary School 24
Essay on the topic:
"The Importance of Financial Literacy for Modern Man"
Kiselevsky urban district
Being financially literate is very important for a modern person. Almost every day a person is faced with finances and sometimes does not know or does not understand how to use them correctly. Throughout life, a lot of finances pass through the hands of a person, the flow of which a person needs to control.
He must be able to make informed decisions about the use and management of his money. Therefore, financial literacy is the most important factor in the well-being and success of a person.
Financial literacy is a sufficient level of knowledge and skills in the field of finance, which allows you to correctly assess the situation on the market and make reasonable decisions.
Financial literacy contributes to the adoption of competent decisions, minimizes risks and, thus, can increase the financial security of the population. It helps us to think more rationally, to plan our future. It should not be underestimated, because the well-being of a person depends on it. It is financial literacy that teaches us how to save, multiply, and create our own savings.
Savings - part cash income the population that people save for future purchases, meeting future needs; represent the difference between disposable income and consumer spending. A modern person should be able to manage their savings. If a person fails to do this, then it will be difficult for him to live in the modern world.
Consider, for example, a situation. After graduation, the young man went to get an education in an educational institution located in another city. When he lived with his parents, his parents fully provided for and controlled him financially. Finding himself in a new environment for him, he was unprepared for financial independence. He spent the money received from his parents with pleasure on entertainment and, as a result, was left without a livelihood. The young man, being financially illiterate, could not properly distribute his own and finances. Over time, this behavior becomes a habit. A person grows up, but his habits remain the same. He can pass on the same behavior of financial illiteracy to his children. After all, it is the parents who should instill in the child the basic rules of communication with finances. But, being financially illiterate, they will not be able to do this.
Therefore, I would like such practical exercises to be introduced in schools and aimed at developing useful skills in dealing with finances.
It must always be remembered that today's children are future participants in the financial market, borrowers, savers and taxpayers. Therefore, teaching financial literacy is advisable to start at an early age.
I think that financial knowledge acquired at the stage of personality development will help young people to be more purposeful and responsible adults. This invaluable knowledge will make their lives much easier in the future. The main thing is that knowledge should not remain a theory, but be applicable in real life, act in practice.
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home materials Lecture course “Banking services…
Course of lectures "Banking services and relations of people with banks"
A course of lectures that tells about what kind of relationship can be between banks and individuals, what is a bank deposit and a loan.
Author and lecturer of the course
Bezdudny Mikhail Antonovich
Doctor of Economics, Associate Professor of the Department of Finance of the Faculty economic sciences National Research University Higher School of Economics, lecturer at the Federal Methodological Center for Financial Literacy of the General and Secondary Vocational Education System
TOPIC 1: Banks and non-bank credit institutions: services for the population
Lecture 1: Banking system
The role of the banking sector in modern economy. Legal regulation banking activities.
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Lecture 2: Banks and non-bank credit institutions
Non-credit and credit financial organizations. Banks and non-bank credit organizations.
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Lecture 3: Central Bank of the Russian Federation (Bank of Russia)
Legal status of the Bank of Russia. Goals of the Bank of Russia. Functions of the Bank of Russia. Monetary policy of the Bank of Russia. Banking regulation and banking supervision.
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Lecture 4: Banking
Scroll banking operations. List of other transactions acceptable for credit institutions.
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Lecture 5: Banking Licensing
Book state registration credit organizations. License for banking operations. Revocation of a banking license from a credit institution.
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Lecture 6: Microfinance Organizations
What is a microfinance organization. Types of microloans. The main differences between microloans. Microloan repayment. Acceptable methods of collecting overdue debts. Protecting the rights of borrowers and investors.
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Lecture 7: Bank accounts and money transfers
What are bank accounts. Account opening. Grounds for refusal to open an account. Settlement account and settlement document. Basic payment methods. Forms of non-cash payments.
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Lecture 8: Bank cards and Internet banking
Types of bank cards. Transactions allowed for individuals using a bank card. General recommendations for the safe use of bank cards. Recommendations when making transactions with bank card at an ATM. Recommendations when using a bank card for non-cash payment for goods and services. Recommendations when making transactions with a bank card via the Internet. Recommendations for bank customers when making payments using mobile devices.
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Lecture 9: Commission
How does the bank make money. Payment of the bank's expenses for the transaction on the account. Bank informing the holder payment card on the amount of the commission.
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TOPIC 2: Bank deposits
Lecture 10: Main characteristics of bank deposits
Definition bank deposit. Difference from a bank account. Bank deposit agreement. Contribution to the foreign currency. Demand deposit. Term deposit. Advantages and disadvantages of these contributions.
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Lecture 11: Bank deposit agreement
What is a bank deposit agreement? What conditions must be observed when concluding a bank deposit agreement?
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Lecture 12: Deposit interest
Fixed and floating interest rate. Features of the calculation of interest. Calculation by formula simple interest. Compound interest formula. Dynamics of weighted average interest rates on deposits of individuals attracted by credit institutions.
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Lecture 13: Deposit return, inheritance and transfer of rights
Deposit return policy. Contribution inheritance rules. Power of attorney for the right to dispose of the deposit.
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Lecture 14: Savings Certificate
What is a savings (deposit) certificate? Bearer and nominal savings certificates.
Transfer of a nominal savings certificate.
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Lecture 15: Investment in precious metals
Types of deposits in precious metals(on demand and urgent). Impersonal metal account.
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Lecture 16: State deposit insurance
Deposit Insurance Agency. When does the depositor's right to receive compensation arise? The procedure for the depositor to apply for reimbursement of deposits. The procedure for paying compensation on deposits.
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Lecture 17: Taxation of deposits
In which case the income received individual in the form of interest on a bank deposit, are taxable?
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Lecture 18: Some burning questions and answers to them
Do I need to repay a loan to a bank if its license is revoked?
In what order is a loan repaid in a bank whose license has been revoked? Will insurance be paid if there is a loan? What should be done in order not to be among the "gray" investors? In what case is a moratorium introduced in a bank?
Are citizens' deposits certified by savings certificates insured? What amount will the depositor receive if he has deposits in different branches of the same bank? etc.
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TOPIC 3: Bank loans
Lecture 19: Consumer loans
Retail structure loan portfolio banking sector. What is a consumer loan? Classification of consumer loans. Categories of consumer loans by areas of use. Loan terms. Methods of granting loans.
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Lecture 20: Credit history
positive and negative credit history. Central catalog of credit histories.
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Lecture 21: Consumer loan agreement
Necessary information for concluding a contract consumer credit. General and individual conditions consumer loan agreements. The procedure for changing the terms of a consumer loan agreement. Information provided after the conclusion of a consumer loan agreement.
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Lecture 22: The full cost of consumer credit
In what cases does the lender calculate and inform the borrower of the full cost of a consumer loan? Variable interest rate change.
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Lecture 23: Early return and restructuring of obligations
Early return. Loan restructuring. Debt refinancing. Recommendations for preventing debt service problems.
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Lecture 24: Loan related insurance
Loan collateral insurance. Car loan. Basic features of a car loan. Characteristic features inherent in a car loan.
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Lecture 25: Mortgage loan
What are the mortgage agreements? What should a mortgage agreement contain? What should you pay attention to when choosing mortgage program. Risks of loss / decrease in income. The risk of a decrease in the value of collateral. The risk of losing the collateral. Mortgage payment plans. Transfer of claims under a mortgage loan. tax deductions. Early repayment mortgage loan. Foreclosure on a mortgage.
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A series of lectures on financial literacy was created as part of the project "Promotion of increasing the level of financial literacy of the population and development financial education in Russian Federation", in the direction of "Assistance in building the human resources capacity of teachers, methodologists, administrators of educational organizations in the field of financial literacy, as well as an effective infrastructure to support their activities in the dissemination of financial literacy."
views - 304
thematic module - Banks, banking products, MFI
heading material - Educational and methodical materials
material type — Video footage
level of receiving inf. — Experience of other projects of the Ministry of Finance
publication date - 25.08.2017
67% of Runet users are not confident in their financial literacy. I wonder why? Most likely, the answer lies in the fact that there is no such subject in the school curriculum - “Financial” 67% of Russians are not confident in their financial literacy. I wonder why? Most likely, the answer lies in the fact that there is no such subject in the school curriculum - "Financial Literacy" - and this term remains a mystery for many of our compatriots. How can you be sure of something you don't understand?
About the problem
From childhood, we were not taught the knowledge about money and how to properly manage it. And today it turns out that knowledge about management personal finance we receive from numerous sources on the Internet, as stated by a little more 60% participants in the ROCIT survey.
Financial management skills are taught only to specialized specialists: economists, financiers, bankers, etc. And if you studied to be a veterinarian, then you are unlikely to have received enough knowledge about financial system, investment, planning and forecasting. But today this knowledge is perhaps the most important, necessary for the well-being of every person, regardless of the type of his activity.
Of course, there are both paid and free courses that teach personal finance management skills, but only 15% respondents said they received financial literacy training free of charge and only 1% decided to take paid classes.
What to talk about financial literacy when to plan personal finance about 45% respondents use a pen and notepad, and only 27% use specialized financial accounting programs that are undoubtedly better, more practical and always at hand.
What is the main problem of inability to manage own funds? First of all, in the inability or unwillingness to keep records of personal finances. 25% respondents do not take into account their expenses. For the country as a whole, this figure means that a quarter of the population does not care about their financial well-being. In addition to this, statistics show that there are still more than half ( 53% ) make small spontaneous purchases up to 1000 rubles, and 37% participate in random promotions and sales. And everyone seems to have forgotten about the popular saying “A penny saves a ruble”.
Let's go back to the term "financial literacy". According to Wikipedia:
“financial literacy- body of knowledge about financial markets, features of their functioning and regulation, professional participants and their proposed financial instruments, products and services, the ability to use them with full awareness of the consequences of their actions and the willingness to take responsibility for their decisions.”
In 2016, the Organization for Economic Co-operation and Development (OECD) published the results of an international comparative study of financial literacy in 30 countries. In Russia, this study was initiated by the Ministry of Finance within the framework of the Project “Promoting Financial Literacy of the Population and Development of Financial Education in the Russian Federation”.
According to the results of the study, the average score for financial literacy in all countries is 13.2 points out of a maximum of 21. In OECD countries, the average score is 13.7 points. Russia received 12.2 points and 25th place.
For a simple layman, the concept of “Financial literacy” is too complicated, and it is completely incomprehensible how to become financially literate.
If we combine all the data from open sources, we can distinguish four key components of personal financial literacy:
Money is a tool. It is necessary to approve your approach to money. From now on and forever it should become not consumer, but managerial. Money is an asset that can and should work. Awareness of money as an asset will lead a person out of the vicious financial circle “from paycheck to paycheck”.
Planning and accounting. To get started, we recommend that you set up an account. This will be the first step towards control. Money. After analyzing where the precious rubles go, you will be able to adequately assess your expense items and revise them. Numerous programs and services will help with planning, for example: https://zenmoney.ru/ or your own spreadsheet in Excel on a personal computer. And also, for sure, personal account your online bank has a planning function that allows you to set even monthly deductions for the realization of a dream.
Study and understanding of banking products. It is primarily about bank deposits. As a rule, deposits are a reliable tool for storing, saving and accumulating money. Today there are a great many financial programs suitable for anyone with any income.
Passive income and investments.
Money has a unique property - to share and multiply. Investment is one of the easiest options passive income. Even small investments in promising projects or developments can bring income. You can also invest in own projects. The main thing in the case of investments is to always calculate the risks that certainly exist.
Various organizations are working to improve the financial literacy of citizens, from the Central Bank to NGOs and financial institutions who have embarked on the development of knowledge about financial products at their clients. Don't pass up the opportunity to learn personal finance management skills. This is not only relevant, but also really useful knowledge that will definitely not be superfluous, will help you keep your income and expenses under control and increase your standard of living.
See full infographic>>>
In addition to the fact that you always have the opportunity to enroll in paid financial literacy courses, there are many useful materials and services, by studying which you can get simple personal finance management skills:
Video lectures on financial literacy at the Higher School of Economics
Fingram Project
Methodological materials of the Central Bank on financial literacy
“Financial Literacy Guide” ROCIT
And we, in turn, want to give some simple advice for those who have decided to embark on the path of independence and personal finance management today.
Change the attitude towards money in yourself and all family members. Money is your tool, don't waste it.
Start keeping records. Write down in a notebook or a specialized program where and how much you spend.
Explore various family finance planning programs.
Choose the most comfortable you and start setting financial goals.
Explore opportunities for cash deposits(banks/funds/investment programs, etc.)
Decide on controlled but definitely better life and don't give up accounting and planning cash flows at the first positive results, and they will definitely be!
Video
with an expert
Invited guest:
Nailya Zamashkina, Development Director of the accelerator Fintech Lab
Presenter:
Olga Rybakova, Head hotline Runet, ROCIT
Conclusion
“If you want to be rich, you need to be financially literate.”
Robert Kiyosaki
Good afternoon, readers of our blog! Blog author Ruslan Miftakhov is in touch. Now people are especially interested in the question of financial literacy, where to start. Why is it that someone with an average income does not experience problems, while others hardly make ends meet?
Want to learn ways to develop financial literacy? Then check out our article.
There are many resources for students and adults to help improve financial literacy. But besides this, there are various trainers who promise to teach you everything from scratch.
How they actually work:
- Collect materials.
- They systematize them a little, take the necessary passages.
- Seasoned with a pinch of their own dubious experience.
- They sell tickets for the course for 500-3000 rubles.
Yes, it's undeniable that among all the "trainers" there are really smart people who can teach you something useful, but they are a minority. In most cases, you will simply be given slightly revised information that can be found in books or articles on the Internet.
Therefore, remember one simple truth: "No one will teach you to think with your own head." It is better to study the information on your own, systematize it and draw conclusions.
Minimum financial literacy
The foundation of financial literacy includes several points:
- approximate idea of fraud;
- calculation of income and expenses;
- formation of savings;
- right investment.
Let's break down the main points for a better understanding.
Frauds - it is important to know about them!
It is worth starting to develop financial literacy by studying common fraud schemes. Their list is huge, criminals are constantly coming up with new ways to take money from the population.
Let's explore some common methods:
A call or message from a relative asking for money transfer. The reasons may be different - the car broke down, they were taken to the police, etc. Be sure to contact the person to clarify the situation.
In social networks, another scheme is gaining popularity - a request for a loan. A friend writes to you, wanting to borrow 1-2 thousand rubles. But in the future you will find out that the page was hacked and the money went to scammers. There is only one way to fight - to personally contact a friend by phone.
A very common method is to receive codes to confirm the operation. You are allegedly contacted by an employee of a bank or a mobile operator. Different ways he tricks the password from the phone to transfer money to another account.
Never share secret codes, including card numbers, with anyone.
Pyramids and pseudo-investments. HYIPs have been around for many years and projects are constantly being updated. About MMM and how my relatives fell for the bait of scammers, I already wrote in.
To learn how to resist scammers and not part with money just like that, start treating everything with distrust. Be sure to check the information, then you will not become a victim of another fraud scheme.
Calculation of expenses and income
Today, there are many applications that allow you to record expenses and incomes, quickly find out how much money is left from your salary. I have been using the service for several years easyfinance to control all wallets and the movement of finances.
If funds are stored in a bank account and all transactions are carried out through a card, then in your personal account you can study the data of interest.
Investments
The funds you have can be invested on your own.
There are several ways to invest:
- The easiest option is . The yield is not so high, but the reliability of the deposit is guaranteed.
- Investment in various projects. But it is important to carefully study all the information, to find out how viable the solution is and whether it is possible to make money on it. Here is an example of one of mine.
- Investment in new buildings. The scheme is simple - at an early stage of construction, an apartment is purchased, after delivery, its price increases by 10-30 percent. Real estate is being sold.
- Purchase of company assets. But you need to form a portfolio of various valuable papers to compensate for losses in one position with income in others. Like different companies.
You can find a lot of tips in various videos and materials. The systematization of information was carried out, we offer the main points for review:
- Study more materials, you can read books. It is important to gradually accumulate theoretical knowledge.
- Learn to save and cut costs. Refuse unnecessary purchases, things that are not needed at the moment.
- Set aside 10-30% of your salary every month, or more. So you will have savings that will come in handy in various situations.
- It is better to put the accumulated funds on a replenished deposit in the bank so that interest still drips on them.
- Try to increase income in the future, for this you need to grow professionally.
- Do not skimp on paid training courses to improve your skills. Investing in yourself will allow you to earn more in the future.
- Avoid loans almost completely. Want to buy a brand new iPhone but don't have the money? If you can't afford a thing, then never go into debt for the next trinket. It is better to find a device simpler.
What can you borrow
Your productivity and professional level will begin to grow, and in the future you will be able to increase your income.
Another example came to mind from life when we went to another city for an ultrasound scan with a second child in the tummy, since there was no way to check whether everything was in order with us.
Therefore, we were sent to a neighboring city, where we were checked with modern equipment, which cost 40 million rubles on credit (the doctor let it slip). The queues were for a week and even months in advance.
Here is an example of the right debt, over time it will all pay off and will only bring profit.
You can attend online seminars (webinars), get more information about financial literacy. The main advice is to spend money wisely, do not spend money on things that are not particularly necessary.
Be sure to build savings to have reserve fund to ensure financial stability.
Watch a cartoon about financial literacy, take your time instead of watching all sorts of nonsense on TV.
Also subscribe to our telegram channel. Until we meet again, we are waiting for you again on the pages of our blog!
Sincerely, Ruslan Miftakhov
Why is increasing financial literacy an essential prerequisite for improving material well-being? What are the most important lessons of financial literacy?
Today, the problem of financial literacy is widespread, both in the countries of the post-Soviet space and in developed countries. Western Europe and North America. The paradox lies in the fact that, despite the low financial literacy of the population, elementary lessons and money handling skills are unlikely to become a separate subject at school or university.
The basics of financial literacy are the most important prerequisite for improving one's own material well-being, because when a person has the skills to manage his money, he manages them more efficiently.
Financial literacy: where to start
Regardless of your education or income level, you can start improving your financial literacy today. We recommend you the following sources.
#1 Books about personal finance. There is no point in reading specialized books about monetary policy central banks or the structure of the modern world foreign exchange market- this will not help you in practice. You need books that focus on developing practical money management skills for every day:
- Bodo Schaeffer "Money, or the ABC of money", "The path to financial freedom"
- Robert Kiyosaki "Rich Dad Poor Dad"
- Robert Allen "Faster Money in Slow Times"
- Napoleon Hill "Think and Grow Rich"
- Brian Tracy "The 21 Immutable Laws of Money"
#2 Video materials. Today, a number of personal finance and self-education experts are posting short videos on YouTube that teach the basics of financial literacy. Pay attention to the following experts:
- Vladimir Savenok
- Evgeny Deineko
- Robert Kiyosaki
If you start studying the above books and videos, you will soon realize that financial literacy is more about a person and his personal qualities than various sophisticated financial and investment theories.
Of course, if you decide to invest your money on your own, then you cannot do without a certain foundation of basic knowledge. In this case, read the beautiful, written as much as possible plain language book by British author Leo Goh "How it really works stock market". It is designed just for those who have never encountered investments and the securities market.
If you don't have the time but have a strong desire to improve your financial literacy, then download audiobooks and listen to them on your way to work.
Fundamentals of financial literacy
Financial literacy is based on three main factors:
- Discipline
- Analysis
- Planning
You can read dozens of excellent books on personal finance, take training from the most reputable and sophisticated gurus, then if you lack your own discipline, then this knowledge will not be of practical use. Therefore, while comprehending the basics of monetary wisdom, you must simultaneously get to know yourself better and identify your strengths and weaknesses.
In order to effectively manage money and grow rich, you will definitely need such a quality as discipline.
Second main factor financial literacy is not as scary as it might seem at first glance. No one will require you to conduct an enterprise valuation or attempt to determine fair price shares. What is meant here? First, an analysis of your family budget. This does not require a higher education, just write down all your expenses and expenses so that at the end of the month you can see your expense items and outline measures to optimize them.
Planning is an essential skill not only in the context of improving financial literacy, but in general, in any area of life. A financial plan is the compass that will guide your efforts and serve as a support in making financial decisions.
Financial Literacy Lessons from Robert Kiyosaki
R. Kiyosaki is a famous writer, entrepreneur and investor. He has gone from poverty (having spent a year with his wife Kim without a home) to financial independence and shares his experience in the pages of his bestsellers. So what does Robert advise?
#1 Take control of your finances. Financial literacy of any person begins with control over personal cash flows. Keep track of your income and expenses. Take charge of your finances.
#2 Pay yourself first. Every time you bring home a paycheck, first allocate the money to your personal funds - "Health", "Food", etc., and then "Taxes", "Utility payments". This is a subtle psychological moment: you show the Universe that you love yourself and respect your work and monetary reward.
#3 Spend money on assets, not liabilities. In his books, R. Kiyosaki strongly advises spending money on something that will bring you additional money - in essence, this is the process of investing. That is, shift the focus from consumer behavior to a wiser one.
#4 Take advantage of crises. The economic downturn gives excellent opportunities get rich. During a crisis, you can buy prime stocks or real estate at a discount - provided, of course, that you have enough cash.
#5 Know the difference between bad debt and good debt. One of the most important lessons of R. Kiyosaki's financial literacy is understanding the essence of bad and good debt. An example of the first is a vacation loan, household appliances, etc. good debt according to Kiyoasky, this is a loan for business development.
Thus, improving financial literacy today is not a difficult task. There are many useful resources available on the Internet, includingJ. K. Persy Blog) Therefore, dare, think, grow rich! We wish you success!
Hello everyone! The main problem of many people is that they still do not understand what the essence of money is. Having studied for so many years at universities, having received colossal knowledge, having defended brilliant diplomas, almost every student has no idea what finance is. Today, financial literacy is real freedom, independence and necessity. Why do many of us still take and cannot close them for the rest of our lives? Is this what happiness is? We are not able to see the world, we cannot travel, we simply do not have the right to afford expensive food and dress in luxurious stores. And all due to the fact that almost every one of us does not know how to handle money. Where to start? How do you get financial literacy to work?
What is a financially literate person?
Anyone who has sufficient knowledge and knows how to manage their own money is always one step ahead of every person. This is a kind of image of an economically cultured inhabitant of the planet who knows exactly what he needs.
- Maintain income and expenses. Anyone who wants to achieve results will definitely record every income and expenditure of his money, no matter how much he spends and how much he earns. Diaries are written down to the ruble and penny. Also, this person writes down future expenses that are likely to occur. There is only one conclusion: everything will be in order in the head, each point is taken into account.
- Money for a rainy day. A literate person will certainly have his finances for an indefinite need. This is called a reserve when money is needed for unforeseen circumstances, such as illness, an urgent business trip, or something more serious. If you constantly save money and try not to touch it, you can make a good fortune. It is this method that shows the financial quality of life characteristic of a literate person.
- Spending and earning are equal. Having received a fairly good salary for your work, it is not necessary to spend everything down to a penny. On the contrary, if the income remains, then you can accumulate a good fortune. Many people do not know how to live by such rules, they believe that if the money appeared on the card, it means that they need to be spent immediately on something. This is the wrong technique. Never let your paycheck go to waste for something that can be purchased a little later.
- Be aware of the economic situation. A financially literate person will always be aware of what is happening in the world. If it is a dollar or euro, then such a person will always monitor their performance. It is very important to understand the economic significance here. And even better - buy a lot of books on this topic and learn some terms that will definitely help in the future for promotion and development.
- Knowing your own rights. The fact is that the one who will always understand his own rights when it comes to banking services will be at the top. It is important to always defend yourself if there are any questions in the financial sphere. In addition, it is necessary to monitor banking instruments and chooses the most trustworthy bank in his city.
Why is the image of literacy so important?
- Responsibility. This is the most accurate and accurate of all expenses and income. This is the most ingenious and careful movement of all cash flows. This is a unique control.
- Active development of the banking sector. This is literacy of economic and banking terminology, knowledge of all products.
- Protection from own economy. First of all, it is financial security and increasing your own income.
Increasing active income
It is very important to give Special attention active income, that is, everything that can bring money. For example, a person has an apartment, but no one lives in it, it is just empty. Why not post an ad for a rental property? So, an empty apartment will turn into a significant active income, which will stay every month as rent. Another great example of active income is this. Every time you invest money or replenish your own account, they accumulate every year. The main difference between financially literate people and everyone else is that they strive to increase their assets and do everything possible for this to make money grow. The first thing to start with in order to increase your active income is to get rid of everyone and loans.
Benefits of passive income
Few people know that it can even bring a small profit. And only a financially literate person will be able to enjoy life and receive passive profit even during a vacation or a round-the-world trip. If you really want to achieve success, it is very important to work even outside your main profession. Perhaps passive income will depend on the client base of a person, or on some created page that ordinary users often visit and read the news. It doesn't matter what it will be. The main thing is that passive income will start working for its owner.
Following a clear plan that is in your head
Everyone should have their own plan on how to get rich. Even if there are no thoughts about how to get money, then such a person is doomed to be poor. - this is the most faithful friend and real assistant who can provide all monetary goals and make them a reality. Here are some great steps that build your personal financial plan:
- a sober assessment of the situation, all income and expenses, assets and liabilities;
- clear setting of desired goals, specific actions and their step-by-step implementation;
- selection of the necessary means to achieve each intended goal.
Robert Kiyosaki and his theory of financial literacy
It is very important to read a lot about economic literacy. Today, in any bookstore you can find a huge selection of literature on this topic. One of the most recommended books to read is Robert Kiyosaki's Rich Dad Poor Dad. In his interesting work, the businessman talks about how he achieved success in life, how difficult it was for him on the way to. There were two people in Robert's life who were able to put amazing truths into his head: his own father, that is, poor dad, and the father of his best friend, rich dad. The American businessman talks about his father as a respected person who did not achieve what he so much desired. His friend's dad was a brilliant businessman who taught others to be independent, which helped Robert become the same. According to Robert Kiyosaki, people are divided into 3 types:
- Rich people buying assets.
- The poor, forever immersed in nothing but expenses.
- The middle class that buys liabilities and thinks they are assets.
An American businessman writes a brilliant phrase in his book that has become a great saying: “It's a brilliant idea to save money every month. Every time we miss an opportunity to increase the growth of our money.” Also, the book gives step by step the entire analysis of investing and specific figures of the first successes, ups and downs, successes and failures of Robert Kiyosaki, an American millionaire.
Great Websites for Increasing Financial Literacy
Today, on the Internet, almost everyone can find anything for themselves. Almost all knowledge can be obtained from the Internet. Here are the TOP 5 best pages that will definitely help you become financially free and literate people.
- City of Finance - this portal was created in 2008 by order of one influential federal project. Here you can ask any question of interest from the economic sphere, get a clear and concise answer, and read a fairly good and informative layer of some information and knowledge about what you need to keep in mind when it comes to monetary literacy.
- Banking Dictionary is an informative web page of the largest portal, which includes all best banks Russia. Here you can find any economic banking terms and all possible recommendations for future clients of Russian banks.
- Fingram TV is a page of a separate TV channel, which was created by the Association of Russian Banks. The entire site is entirely devoted to financial literacy and how to behave, where to start.
- The ABC of Finance is an ingenious project of a unified payment system Visa, which was created specifically for all citizens of the Russian Federation. On the site you can find a lot of interesting things, everything related to the Visa payment system.
- Financial literacy is real economic school, virtual version printed edition which is still in production. Here you can find a lot of interesting things that directly relate to financial literacy.
Other Ways to Succeed
There are other ways that will certainly help to develop. Some people have already realized that if it were not for the trainings, then life would remain boring and uninteresting. Therefore, here is another way out of the situation - to attend seminars, trainings and other courses. Many businessmen who have achieved unprecedented heights arrange real live meetings, talking about how they have achieved such a luxurious life. In fact, such living examples are essential for motivation. And all these money pyramids have nothing to do with it. The essence of the whole thing is that before you stands the same person of blood and flesh. True, this person is financially literate, and once he was able to achieve unprecedented heights, overcoming his laziness and learning how to manage own income and expenses. And now this lecturer earns millions. So why are you worse?
Another great way to improve your literacy is to watch videos on YouTube to improve yourself. There are 3 good specialists who in detail in their video tips consider financial literacy and the main approaches to it: these are Robert Kiyosaki, Evgeny Deineko and Vladimir Savenok. The more people watch these videos, the sooner they will realize that financial freedom and literacy are real psychology that you need to get used to, these are the golden rules of life that are important to follow.
Fundamentals of financial literacy
Factors are simply indispensable. Discipline, analysis and planning are 3 important factors for further development. Here good example: a person can read a hundred books, watch thousands of videos, but all this may not teach him something new, will not give an impetus to reprogram himself a step higher than he lives now. All this is due to the fact that there is no discipline - which means there is no benefit. Therefore, putting the basics of monetary wisdom into your smart head, you must simultaneously discipline yourself, do an analysis, compare your life before financial illiteracy and after raising this level.
smart books
To develop your inner world and become more savvy in economic sphere, should read more, as mentioned above. Here are the best smart books to help you improve your own level of financial literacy:
- Brian Tracy "21 Immutable Laws of Money";
- Robert Allen "Faster Money in Slow Times";
- Napoleon Hill "Think and Grow Rich";
- Robert Kiyosaki "Rich Dad Poor Dad"
- Bodo Schaeffer "Money, or the ABC of money";
- George Clason "The Richest Man in Babylon";
- Richard Branson "Fuck it all, get on and do it";
- John Kehoe "The Subconscious Can Do Anything"
5 golden rules
- The goals set must be realistic and achievable. It doesn't have to be a childhood dream that can't be fulfilled. Set yourself goals that you can absolutely achieve in life with a little effort.
- Never be afraid of anything, even burn out. Without trying anything, you will not be able to fill the bumps. No one says that financial literacy consists of only some pleasant moments. Many millionaires fell, but got up with their heads held high. Not always everything has to be perfect and like clockwork. Misses are also useful, especially in matters such as finances, so there will be more experience.
- Always think about the risks and what might not work out. Believe me, it will make life easier. Forewarned is forearmed.
- Use all the tools that are provided to achieve your goals. Do not be idle and always be active. Only in this case does it take place Financial independence.
- Be a frugal person, approach everything reasonably. This does not mean that now is the time to deny yourself everything. You just need to sometimes refrain from expensive things in favor of a cheaper product. But then it will be possible to afford a lot of interesting and expensive things, as soon as financial literacy and independence are achieved.
In order to live an interesting life, having achieved something with your own hands, it is important now to think about what is happening around. First of all, determine what is necessary for you, what is in first place in the ranking of the most necessary things. If the answer is that money means a lot, this is already a signal that it is time to study financial literacy. No matter how old a person is, it's never too late to start. Whether you're 50, 80 or 20, it doesn't matter. It is important here who disciplines himself better and will say the main words to his inner voice: “I can do everything, I can do everything, I am a financially literate person!”. And one more piece of advice for those who have already decided to become more successful after reading this article: share your knowledge, do not keep it to yourself, because people should know a good example. Do good deeds and do not forget that literacy comes with time and experience. Therefore, do not delay learning your own I to become a financially free person who knows how to control the flow of money. Get a book by Robert Kiyosaki, he writes a lot of smart and ingenious things! See you soon!
- this is the key, central topic of this site, and therefore today I decided to once again dwell on this topic and write an article that would reveal this concept in an accessible and most complete way. After reading this publication, you will get a complete picture of what financial literacy is, what this concept includes, and why every person needs all this.
In the article, I will give many links to other materials on the site, where certain issues are described in more detail, so follow them to find out more.
What is financial literacy?
So, what is meant by the phrase “financial literacy”, what is it? There is no need to invent anything complicated and abstruse, just look into the dictionaries and see what the words that make up this concept mean.
Finance is the movement of funds, the processes of formation, distribution and use cash funds.
Literacy is a high degree of a person's possession of certain skills and abilities.
Accordingly, we can combine these concepts and get the following definition:
- this is a person's possession of the principles of formation, distribution and use of monetary funds. In other words, this is the ability to competently manage personal finances.
Please note: there is no expression “monetary literacy”, it is called precisely “financial”. The reason is that finance is a broader, more accurate, and more correct concept than money (you can read more about this in the article). Therefore, to perceive your income and expenses as money is wrong and not enough to be a financially literate person.
If you briefly and easily indicate the difference between these concepts, it will look like this.
Money can:
- earn;
- to spend;
- use to determine the value;
- hoard.
Finance can:
- earn;
- spend;
- take account of;
- distribute;
- optimize;
- use to create funds;
- reserve;
- accumulate;
- invest.
Separately, I want to note that finances can be invested (invested) in order for them to “produce” new finances, in which case they acquire a new name -.
Financial literacy means managing finances, not money: this is a broader and more precise concept.
What is financial literacy for?
Why is financial literacy necessary? Everything is very simple. There are the most important areas of human life, in which a person is simply obliged, in my opinion, to understand well, navigate, and be literate. Why? Because his whole life is based on this, and he constantly has to deal with it. And a good knowledge of the matter, a professional approach to solving problems will always give better results than an amateurish and illiterate one.
If you approach financial affairs illiterately, amateurishly - all these issues will be resolved in this way: slowly, not to the end, on a “blunder”. Therefore, financial literacy is necessary: a reasonable, competent, professional approach to managing personal finances.
Perhaps someone thinks: “What is there, in principle, I already know how to manage finances. I earn money, I try to earn more money, I spend quite reasonably, sometimes I manage to save something, sometimes I take out loans, I have plastic cards and bank accounts, I send and receive money - I am quite a financially literate person!”. As a rule, this is a big misconception that really interferes in life and slows down many vital processes.
To make it clearer, I will explain with an example. Here each person roughly imagines how to build a house. He knows that it is necessary to dig a foundation pit, lay a foundation, erect walls, lay floor blocks, build a roof, glaze, install doors, make external and internal decoration. It seems that everything is clear and everyone has known for a long time. But can any person really design and build a high-quality, reliable, beautiful house? Even if he has all the necessary resources at his disposal? Even if he just manages and directs this process? Not! Can not! What he builds will not meet the norms and standards, somewhere it will be wrong, unaesthetic, and even life-threatening: in the event of the slightest natural disaster, a house built by an amateur may not withstand and collapse! Only a competent, professional foreman can build a house of high quality!
The same is true with financial literacy. Considering yourself financially literate does not mean you are! Personal finance management should be subject to established rules and standards that have already proven their effectiveness and correctness in practice. This is a science that needs to be studied, mastered and put into practice. This is something to which a professional approach must be formed.
What does financial literacy include?
To make it even clearer, further I will give the main areas that financial literacy affects, which you need to study, know and apply. Just using the example of a house, I already once analyzed the concept (also worth reading), and the concept of financial literacy is a little wider. So what does it include?
Ability to earn money. A financially literate person, first of all, should know. And this knowledge and skills should not be limited to the only possible traditional work. There are many more ways to make money, they involve getting. I'm not saying that you need to use all of them, but there definitely should be more than one, because income from one source (even if it seems very reliable) is always a huge risk. You need to be able to see opportunities for earning in everything, and use what you like best. In this case, it is desirable to focus on.
The ability to save. This is one of the components of the ability to spend, but I decided to single it out separately. Observations show that most people have a completely distorted idea of \u200b\u200bsaving: they believe that saving is “squeezing”, denying yourself something, not getting something vital, etc. In general, many are influenced by a number of myths and stereotypes about saving. In fact, saving is just frugality, and saving means carefully spending personal finances. You can read more on this topic here: and in other articles on the site on the topic of saving.
Ability to plan. Why is accounting necessary? In order to visually see your past expenses, and plan future ones based on this. Financial literacy implies the existence of short-term and long-term financial plans and following them. How to make them - you can read here:
Ability to optimize. A financially literate person should be able to optimize his budget, that is, correctly allocate his expenses in order of priority in order to exclude the possibility of a lack of finance for something really important and urgent. How this can be done - in the article.
Ability to invest. The highest skill, which includes the concept of financial literacy, is the ability to invest: to invest money so that they bring new money, to create sources of passive income for yourself. This is not easy, and is always associated with risks, however, it is necessary - this is the main tool for achieving the highest financial condition of a person. A whole section is devoted to investing on this site, you can start, for example, with the article
Ability to use banking services. In the process of managing personal finances, any person will inevitably constantly encounter banks, their products and services. And he is simply obliged to understand them well, to be able to distinguish profitable products, tariffs, transactions from unprofitable ones, so as not to lose, but to earn on the services of the bank, so that relations with the bank are partnerships, and not enslaving, as is often the case. Banks and banking services a separate section on the site is also devoted to: use the search on the site, read, study what is of interest to you in the first place - there are already a lot of materials.
Basic knowledge of economics. Finally, financial literacy involves knowledge and understanding of the basic economic processes taking place in the state, in the first place - those that have the most direct impact on the state of personal finances:, etc. The economy and its processes are also considered in a separate section of the site - come in and study.
Where to learn financial literacy?
Well, in conclusion - about where you can learn financial literacy, where to learn about all this, if it is so important. Unfortunately, this is now practically not taught anywhere. Personally, I have a degree in finance, but personal finance was not given a single lesson in any subject there. In general, I have more than once drawn the conclusion that financially literate people are unprofitable for the state: it is more difficult to manage them, it is more difficult to force them to live within some necessary framework.
It is much easier for the state to keep people in strong financial dependence - this is an excellent management tool. After all, the state is endowed with the function of producing money, it can produce as much money as it sees fit, and its citizens are forced to earn this money.
Therefore, teaching financial literacy in educational institutions has not yet become widespread. Although there is some progress in this, which is encouraging, it is still clearly not enough. Therefore, it is now possible to learn financial literacy in sufficient volume only on your own, having shown a desire and interest in this. There are three main sources of learning:
- Literature on financial literacy (books of domestic and foreign authors).
- Private courses, seminars, webinars, financial literacy trainings.
- Websites that teach financial literacy.
What to choose, what to focus on - everyone has the right to decide for himself, and it's good that in this case there is a choice. I would like to dwell on the third point, since it is the most accessible, and most importantly, free.
I myself, having seen the low problem, decided to contribute to its solution, and created this site - which today has already become quite well-known, popular and authoritative Internet resource, one of the best in its subject (for those who are interested, you can read, for example, there are a lot of visual statistics). More than 1150 unique author's articles have already been published here with materials that will help you improve your financial literacy. Access to all site materials is completely free, you don’t have to pay for anything here, unlike many other similar projects.
Everything you need to develop and improve your level of financial literacy, learn how to manage personal finances, improve your financial condition, which means that it is better to live in modern realities.
I am always ready for a dialogue with my readers in the comments and on, where a lot of interesting people are already talking, for whom financial literacy is not just empty words, and who have already achieved good results in personal finance management, as well as those who are only at the beginning of this way. Personally, I am always interested in reading and discussing other people's financial stories where I can - I always help with advice.
In general, here is a real and concrete opportunity for you to improve financial literacy, and how you use it and whether you use it is already your decision.
In any case, I would like the number of financially literate people to be as large as possible! This will be better for everyone and for everyone! See you on the site!
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