If there is something that will accompany us throughout our lives, it is money. A question as important as knowing how to manage savings, expenses and financial expectations will help us have a calm life without worrying about the state of the pocket, even in moments of uncertainty like the current one.
In fact, households with less financial literacy tend to borrow more and have less gross wealth , as shown by studies by the Organization for Economic Cooperation and Development (OECD). That is why it is essential to train in financial education .
Financial education is the set of knowledge acquired that allows managing finances and understanding the economic context that surrounds us. It is the perfect tool to manage our money without worries , so that we make decisions with all the information we have and understanding basic concepts that, applied to our pocket, will be transformed into savings habits and expense planning. Because when we manage resources well, it is much easier to invest them in what really matters.
The Japanese art of saving
To start managing money correctly, we can learn to save with a method with more than a century of history: Kabeko. This methodology, which was born in Japan in 1904, is very simple and suitable for any pocket and will help us to have expenses and income under control , being able to achieve the savings objectives set.
With the Kabeko method we will be aware of where our money is going and how we can redistribute it. The Kabeko method is based on recording all the daily income and expenses as the savings goals that we want are adjusted. As a result, in addition to saving, we will be aware of where our money is going and how we can redistribute it with daily, weekly or monthly contributions.
Saving is willpower, rigor and perseverance . And Kabeko is one more step to improve our financial education.
Ant expenses, the invisible enemy
Many times we feel that, no matter how much effort we make to save and restrict our purchases, the money continues to come out without knowing very well where we are spending it. It may be the fault of the so-called ant expenses : the small day-to-day consumptions that go unnoticed .
An example of these ant expenses could be coffee in the morning at the office, shopping at vending machines when hunger strikes in the middle of the morning, not completely unplugging appliances, payments from streaming platforms, etc. Small disbursements that, added to the end of the month, take us away from saving goals and whose knowledge is part of a basic financial education.
Learning about finances is not only an adult task, but children must know what money is and what role it will play in their future in order to become financially independent with the lesson learned .
We can instill some basic notions of financial education in our children as if it were a game in which, in the end, we help them to have savings habits in the future . Thus, we can start by telling them what money is and how it works, and then give them a symbolic amount that they manage in their own piggy bank.
So that they have their first contact with money, we can give them a small monthly payment when they are older and open a bank account for them so that they can manage it themselves. They will enjoy the new responsibility and learn to manage something that will always be present in their lives.
Financial education will make us ready for economic unforeseen events
These three steps (Kabeko method, identify ant expenses and instill money management in the little ones) are a good way to start improving our financial education . If practiced daily, you can achieve your savings goals and be prepared for any economic unforeseen event.