Robert T. Kiyosaki and best friend Mike, spent their late childhood into their teen years doing the opposite of what all other children were doing on the weekends, or during their free time. Robert and Mike spent their time furthering their education, but not about knowledge geared toward typical school learning. They chose to learn about financial literacy. These boys worked for a genius in the financial field, commencing their journey to being financially literate. Beginning to work at this void of knowledge for the greater majority of americans at such a young age, set them up for greatness. Financial literacy has forever been, and still is, a huge problem for americans. This financial illiteracy for americans will impact the ability to
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Income can be provided from a job, or from assets (things that make money), whereas expenses, the polar opposite, are anything that costs money. Students who have taken a financial literacy course at a younger age are less likely to have far too many expenses, or to become compulsive buyers (Malcolm 3). An income statement prevents unneeded expenses since they are measured against the income, allowing the total leftover money to be seen and reveal any false awareness of money the person may think they have. It is shown that 60% of eighteen to thirty-four year olds do not keep a budget (or income statement) (Malcolm 2). Being aware of the income statement will help prevent debt because it will alleviate deficit spending (spending money a person does not …show more content…
Saving money is just what it sounds like, putting money received from either income or assets into a place where it can be safe and accumulate over time. Unlike investing where the money put in can grow on its own, saving does not self-compound enough on its own, and requires a repeated effort of depositing money over and over in order to grow. It is scary how many people put forth such little effort into saving. “Roughly three-quarters of americans are living paycheck-to-paycheck, with little to no emergency savings” (Johnson 1-2). This just goes to show how financially illiterate americans currently are; however, surveys do show that kids who take courses to enhance financial literacy are more likely to go on to save money in the future (Malcolm 3). Thorough saving is the key to living a financially stable
Income can be provided from a job, or from assets (things that make money), whereas expenses, the polar opposite, are anything that costs money. Students who have taken a financial literacy course at a younger age are less likely to have far too many expenses, or to become compulsive buyers (Malcolm 3). An income statement prevents unneeded expenses since they are measured against the income, allowing the total leftover money to be seen and reveal any false awareness of money the person may think they have. It is shown that 60% of eighteen to thirty-four year olds do not keep a budget (or income statement) (Malcolm 2). Being aware of the income statement will help prevent debt because it will alleviate deficit spending (spending money a person does not …show more content…
Saving money is just what it sounds like, putting money received from either income or assets into a place where it can be safe and accumulate over time. Unlike investing where the money put in can grow on its own, saving does not self-compound enough on its own, and requires a repeated effort of depositing money over and over in order to grow. It is scary how many people put forth such little effort into saving. “Roughly three-quarters of americans are living paycheck-to-paycheck, with little to no emergency savings” (Johnson 1-2). This just goes to show how financially illiterate americans currently are; however, surveys do show that kids who take courses to enhance financial literacy are more likely to go on to save money in the future (Malcolm 3). Thorough saving is the key to living a financially stable