I really feel that financial education is more important than ever before. I saw so many news that many small businesses were filing bankruptcy. One of the reasons for bankruptcy is lack of financial education. I will take one example.
I am sure that everyone heard about economy falls to severe recession due to bubble burst.
In fact, due to bubble economy in Japan burst during 1990s, Japanese property price felled dramatically and many Japanese companies filed bankruptcy after several years of economic boom (Other asian countries also had similar experiences during late 1990s too). Same kind of burst happen in United States during 2000 (Tech bubble) and 2006 (Housing bubble). I plan to write about process of bubble economy soon.
My point here is: if more people understand about detail of bubble economy (why and how it is created), much less people will be victimized and destitute due to bubble burst. I am sure that if people can tell whether or not this boom is artificial due to bubble forming, they would not invest in or expand the business.
After I read and understand the concept of bubble economy via all possible education (books, audio, and podcast etc), I really started to see the current and potential future economic situation that many people can't see. Financial education allows us to distinguish between artificial economic growth and actual economic growth. It is no longer investment but speculation If people can't evaluate whether or not economic growth that they see is caused due to artificial or actual.
Now, I am seeing several potential economic problems coming on our way. I really glad that I realize the importance of financial education so that I keep learning current facts that allow me to not only prevent from the crisis but also profit from the crisis. In my opinion, financial education is critical whether or not you are employee, self-employee or business owner in order to protect what you have. Again, I will put Jim Rohn's quotation because his word is very true. He said "Ignorance is not bliss. Ignorance is poverty. Ignorance is devastation. Ignorance is tragedy. And ignorance is illness. It all stems from ignorance". Now is the time for everybody to be financially educated.
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Published: 16 December 2010