Online Finance Education – More Than Just a Finance Certificate

It is no doubt that knowledge and skills is what today’s world need the most. The economic recession has just exposed how ill equipped most of us are in managing their finances. This ill equipment ranges from personal finances to business finances. It no wonder that many people especially in America have been caught pants down with lives that were just but borrowed. How else would you call the huge credit card bills that are taking down gigantic economies such as the USA and Europe?

Finance education has to be redefined from the traditional finance for picking mistakes in accounting to a contemporary finance education that allows you to be have skills to better manage personal finances or business finances.

The revolution brought about by the information technology (IT) is an opportunity through which finance education has been revolutionized. The emergence of online finance education propelled by the linkages between students and tutors via the internet has made it easier to share facts on finance education. In addition, people are now able to ask questions that build their daily skills through asking or providing answers that have practical solutions. This can be achieved though blogging.

Online finance education also has the benefit of providing templates from which the practical application of finance theories can be based. For example, a budget planner can be customized to calculate allowable expenses to what proportions.

The traditional training in finance can also be delivered using the online finance education. There are now available e-business degrees that cover training in accounting, business management, actuarial sciences, human resource management, insurance, and international business management among others.

The demand for online training opportunity has fuelled the growth of online colleges or universities. The challenge in enrolling in online colleges is that you have almost no chance of ascertaining the authenticity and quality of service. At most, you can only view information about the college from the websites. The websites are however easy to manipulate to present incorrect information in a seemingly correct form.

As you search for the information on where to find online college or education to improve your financial knowledge, check for an institution that will provide more than just a certificate. You should be able to learn tips on how to get out of credit card debts, how to make the most from your mortgage investments and much more contemporary financial needs.

Shocking Facts About Americans Personal Finances

The majority of our high schools, colleges and even graduate schools don’t have a course teaching the really needed skill of personal finances. This is the reason why most Americans never took this kind of training and don’t know how to handle their personal finances. I have read about high school principals saying that this kind of knowledge doesn’t help the students on their preparation for the real world.

And when some school do provide some kind of personal finance class, it is more probable to be related with economics. There are a few lucky people that get the opportunity to study with great success the financial basics reading some books, doing internet research or talking to friends illustrated on that matter. But sadly, there are others that never do or they do it the tough way losing their money and assets. This deficiency in personal finances education causes severe problems and concern on the individuals. Next I will present some facts about personal finance that will shock you:

 

  • United States, one of the most economically powerful countries in the world, is actually having filled near 1.5 million personal bankruptcies annually, which represents almost 1 in every 80 households. This means in the next 10 years, almost 10% of all households will fil bankruptcy.
  • If you ask American adults about 401(k), less than 10 percent of them understand it well enough to explain it to another person. And when we go to a municipal bond, less than 1 in four will do it.
  • Twenty five percent of the adults between the ages of 35 and 54 have not yet started to save for retirement and studies show that only one fifth of baby boomers are saving correctly for retirement.
  • Financial stress is one of the main reasons for marital problems. And remember that one of every two marriages ends in separation in America.
  • Do you know how the grace period on a credit card works? Almost 80% of American consumers don’t know it. And even more people doesn’t get that credit card interest starts accumulating straightaway on any purchase when you have a credit card with already outstanding debts.
  • On a test made by a well-known Survey company, almost 35 percent of the individuals who took the test responded correctly less than 50 percent of the questions. These outcomes become shocking when you discover that the questions only had two or three multiple choice answers!
  • A little more than half of the people who took a multiple choice investing test didn’t know that when you need to know the best measure of a mutual fund’s return you have to look at their total return.

 

There are huge consequences in our society because of this lack of personal finance knowledge. People spend too much money year after year buying inefficient and low quality financial products and all this lower the long term economic growth of the country. People just spend too much but save too low!
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Are You Treating Personal Finances As A Taboo At Home?

If your parents educated and encouraged you about the importance of the administration of your personal finances, then you are privileged. On my case, my parents taught me the principles for saving and spending money and that information have been priceless during the course of my life. Having to raise four children with a modest salary gave them the experience they needed on personal finances and they were convinced they must pass those fundamental skills to their kids.

Contrary to what happened in my family there are a lot of households where parents treat money as a taboo and don’t share with them all the details of their budgets and how they struggle with its limitations and realities. Most parents think that money is an adult thing and the kids only have to worry about being kids. In some cases, kids have negative associations with personal finances because parents disagree and get to financial crisis and there’s the only moment when they hear their parents talking about that.

There are other cases where parents don’t have the best money habits and even have bad ones and they pass their experience to their children with best intentions, but this can be a problem. Your parents are your parents and you should always listen to them but in the area of personal finances, a bad given advice can cause many troubles. You have to ask where your folks learned about money management and consider if their decisions were made with enough research for the different choices they had. Unfortunately, in some families financial illiteracy is passed on from generation to generation.

Let’s not forget about the occasions where the parents have good information and the correct methodology to money management, but the kids just don’t listen and choose to go on rebellion. For example, your parents are always teaching you how to spend and save your money wisely but the first time you get some extra money you end up buying yourself gifts or any other stuff. 

While we are not able to change the personal finance education we received from our parents or at school, you have now the power to figure out what you need to know to handle your personal finances. And if you have kids, please don’t let them go outside to the world unprepared on this subject. Understand their potential and teach them the right skills they need to be productive and financially well educated. 

How to Teach Personal Finance to Kids

Kids must be taught on how to manage their personal finance as early as possible. It is very important to help them in their life later on. Teaching them about these things will help them manage their finances better. You have to teach your kids about these things to make them more responsible. There are a lot of ways that you can do to teach your kids about personal finance.

EDUCATE THEM ON HOW PEOPLE EARN MONEY

Most kids do not have any idea on how their parents earn money. They just enjoy spending their money without even thinking on how their parents earned it. You have to teach your kids that earning money is never easy. You have to work hard in order to earn. They must realize that concept as early as possible.

It will be good if you give your kids money according to the tasks and chores that they can do inside the house. This will mean incentive in every task that they do. It will help them realize that one has to work for him to earn. This is also a good way to teach your kids to be responsible in doing household chores.

TEACH THEM TO SAVE

Most kids want to buy the things that they like when they see it. They are very impulsive and demanding. You need to teach your kids that life is not that easy. They must realize that one has to save money to buy the things that they want. Help your kids realize that they need to save for the things that they want to buy especially those that are very expensive. You can give them a piggy bank for them to put their money. You then match the amount that they will be able to save to buy the things that they like.

TEACH THEM ABOUT DEBT

Your kids must learn the concept of debt as early as possible. This will teach them the proper way to spend money. You have to realize that your kids will soon be exposed to credit cards and loans. You must teach them not to spend so much to avoid debt. You can start it with their allowance. If they want to borrow from you, you need to explain to them that you need to deduct some amount on their next allowance as a means of payment.

MAKE EXPLANATIONS SIMPLE

You have to realize that kids will have limited understanding about money. You must explain these things in simple ways that they will be able to understand. Make sure that you keep their attention while you are teaching them. Keep your words simple for them to understand you fully.

Kids must learn on how to manage finances as early as possible. This will help them later in their life. Make sure that you explain every aspect of finance to them so that they will have a wide understanding of it. Try to explain the concept in the most understandable way.