In 2008, an enormous global financial crash occurred impacting millions of people. The financial crash was the worst financial crash after the Great Depression of 1930. Many people lost their source of livelihood and jobs, therefore could not support their families. Interestingly, the main causes for both depressions was people’s lack of financial knowledge and understanding of how finance affects everybody. Becoming financially literate can allow people to steer away from such crisis. Financial knowledge is the ability to understand how humans use money as a resource to take care of their needs. Having proper knowledge can lead people to save money and make smarter financial decisions. The US is in trillions of dollars in debt, which is
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After the 2008 financial crisis, a fraudster named Bernard Madoff was caught running a Ponzi scheme, which destroyed many people’s lives. This could have been prevented if the people investing into his fund used their financial knowledge and questioned him about how someone could give a steady return of investment. Eventually, it led to people never recovering their money and many people to lose their life savings from one scheme. A lesson can be learned to never put all the eggs into the same basket and never to become greedy. With the right amount of financial knowledge, one can catch such acts like what Madoff had committed. In 2013, I attended a program at the Henrico Credit Federal Union that educated me about checks, credit cards, debit cards, and debt and how people use them. Even though the ideas taught at the Credit Union were simple, the knowledge has already helped me save money. On my birthday, I was given money and I had the choice of either spending it on software games or put that money my rainy day fund. Instead, I made the decision of saving the money to attend an educational field trip to Busch Gardens, thus using the money for gaining knowledge instead of buying a game that I would finish in a short
After the 2008 financial crisis, a fraudster named Bernard Madoff was caught running a Ponzi scheme, which destroyed many people’s lives. This could have been prevented if the people investing into his fund used their financial knowledge and questioned him about how someone could give a steady return of investment. Eventually, it led to people never recovering their money and many people to lose their life savings from one scheme. A lesson can be learned to never put all the eggs into the same basket and never to become greedy. With the right amount of financial knowledge, one can catch such acts like what Madoff had committed. In 2013, I attended a program at the Henrico Credit Federal Union that educated me about checks, credit cards, debit cards, and debt and how people use them. Even though the ideas taught at the Credit Union were simple, the knowledge has already helped me save money. On my birthday, I was given money and I had the choice of either spending it on software games or put that money my rainy day fund. Instead, I made the decision of saving the money to attend an educational field trip to Busch Gardens, thus using the money for gaining knowledge instead of buying a game that I would finish in a short