Most people appreciate that it is important to look after their health and fitness and will accept that taking personal responsibility for this means having a healthy lifestyle throughout their life. Ensuring that your personal finances are in a similarly good condition will also mean that they need to be looked after continuously and from a young age.
There has been a great deal of attention drawn to the limited financial literacy skills that seem to be fairly prevalent in the population as a whole. Personal finance can seem to be inaccessible as the jargon used can act as a barrier to understanding. Sometimes, subjects that would be easy to understand remain unexplored because of this language barrier.
The demands of modern life frequently …show more content…
Gaining an understanding of the issues and the terminology involved in personal finance is essential in order to ensure that the right questions are asked and better decisions made. An individual who has the confidence to take control of their financial plans will feel empowered, in contrast to the situation where that control is lacking and the individual has no real understanding of their current or likely future financial position. They may not know, for example, whether they have any unnecessary insurance cover in place or whether they are making adequate savings to meet their ambitions.
The alternative to gaining control over personal finances is to fail to become informed and to neglect to undertake any kind of personal financial planning. The risks arising from this approach might include: personal goals not being achieved, inadequate savings being made, dependants not being adequately provided for, inappropriate lending being taken out, and ultimately there is the risk the individual may become financially dependent on the state and this will almost certainly lead to a constant struggle to cover day-to-day living
There has been a great deal of attention drawn to the limited financial literacy skills that seem to be fairly prevalent in the population as a whole. Personal finance can seem to be inaccessible as the jargon used can act as a barrier to understanding. Sometimes, subjects that would be easy to understand remain unexplored because of this language barrier.
The demands of modern life frequently …show more content…
Gaining an understanding of the issues and the terminology involved in personal finance is essential in order to ensure that the right questions are asked and better decisions made. An individual who has the confidence to take control of their financial plans will feel empowered, in contrast to the situation where that control is lacking and the individual has no real understanding of their current or likely future financial position. They may not know, for example, whether they have any unnecessary insurance cover in place or whether they are making adequate savings to meet their ambitions.
The alternative to gaining control over personal finances is to fail to become informed and to neglect to undertake any kind of personal financial planning. The risks arising from this approach might include: personal goals not being achieved, inadequate savings being made, dependants not being adequately provided for, inappropriate lending being taken out, and ultimately there is the risk the individual may become financially dependent on the state and this will almost certainly lead to a constant struggle to cover day-to-day living