Why Financial Education

By Dr. Azubike Aliche

One of the questions that people ask me, often, is: “why did you choose to offer financial education? I have a short answer: because financial literacy is not taught in schools, unless you go to college and major in finance. The low level of financial literacy comes with a lot of problems, particularly for many Americans.

One estimate shows that 79% of Americans live with financial stress and that more than half of Americans live paycheck by paycheck! Many are also steeped in debt because of poor financial education. Consider this: It is estimated that 62% of Americans carry credit card debts. This is not necessarily a problem. The main issue is that about 27% of Americans don’t make credit card payments on time. Because credit card interest grows in compound interest, credit card debts build up quickly. No one can build a solid financial foundation when they can’t save and manage their debts properly.

A sound financial education program focuses on teaching people ways to save for their future – save for retirement and put their money where it yields the best returns. It’s even more important now that people are living long, due to improvements in medical science and technology. It’s also important to learn about how money works, at a time when the viability of the social security scheme is no longer guaranteed. The message here is to spend less and save more!

When it comes to saving for your future, particularly for retirement, it’s important to learn about the various saving plans and how the vagaries of the financial markets affect them, including how these are taxed. It’s also important to understand how life insurance can protect you and your loved ones as well as serve as instruments for investments and savings. It’s also important to know that the earlier in your life that you start saving, the longer and more that you can save!

It is also important to know how taxes and inflation can affect your savings and overall wealth. Whether you pay tax now on your investments and savings or later can make huge difference in your wealth in the future. The longer that you grow your money, the bigger it becomes, over time. Overall, it’s smart investing to put your money in investment vehicles that give you tax advantages, in order to reduce your tax liability. You also need to put your money into investment vehicles that give you a return on investment higher than the going rate of inflation.

Please, contact me for a free consultation.

Phone: 202-539-1184

Email: Info@powercounselingpllc.com

Dr. Aliche is a Certified Professional Coach and Licensed Financial. Professional.