Since we reached adulthood, almost all we establish a permanent relationship with money: the need to seek our livelihood and maintain a healthy financial situation makes it a fundamental element of our life. The approach to the various financial elements begins in different ways, but independent of our profession, occupation or social class, all we are involved in commercial exchanges at some point in our lives.
We know as financial literacy skills and knowledge about financial products and concepts that allow us to make informed decisions about our personal economy.
Acquire a financial culture that allows us to manage our finances well is essential. In our daily life, we are constantly trading, exchanging goods and services, and using money as a fundamental tool. Misconceptions held about him hurt the finances of those who are driven by popular myths. These erroneous beliefs about money and finances are widespread and would not necessarily exist in today’s world, where all the information we need is available to a few clicks.
Popular misconceptions about money
constantly we trade with money, and also we buy and sell in many financial operations we perform. When you apply for credit, you acquire a debt, asks for a personal loan, or change currency, which is actually doing is buying and selling money. But do we really know the price you have the money? Do you have any way of knowing if you are selling your savings at a good price? Information is key when it comes to trade.
When, for example, sell our products in the market, we need to have information on the prices of our goods. In this way, we can set the price that best meets market demands. In this case, it seems obvious the need for information on these products, but do not always see so clearly the need to know what is worth the money.
Popular misconceptions about the most common financial products
In addition to misconceptions about money, financial instruments are the subject of many popular myths that do not correspond with reality. The credit cards , for example, are seen as an instrument that should never be used, when in fact, they are very useful if we know how to use them for our own benefit. Debt suffer the same bad reputation, but if it borrows in the right amount, can provide a lot of stability and economic growth.
Insurance contracts is another financial instrument demonized by too many people. Unfortunately, the custom of having various types of insurance to assist us in unexpected situations is not sufficiently widespread. The general view is that insurance is a waste of money, but this conclusion can only be reached if there is not adequate information. All we do is explore the different products available on the market and find the right fit for our particular situation.
Retirement planning is also essential. Although in general, people begin to make contributions to your pension to elderly, the ideal is to start very early to secure our retirement. Public pensions are not sustainable in many states and new generations should be aware that when they retire, most likely only have the income from their private pension plan.Tags: contracts, Financial, Insurance, Literacy, planning, Retirement