Sunday, February 5, 2023

Learning these finance concepts will improve your financial health

MEXICO.- Regarding financial education, There are some concepts that are essential to be familiar with, because the more information you have on these issues, the more informed decisions you can make.

Currently, many institutions, both public and private, offer financial education courses and workshops to learn more about these and other topics. , pixels

knowing them does not mean remembering them because they appear in the dictionary rather, reasoning and understanding them in order to develop better habits and good financial health.

savings, loan, budget, investment, interest rate, yield, and income, These are some of the basic concepts of financial education that are important to know in order to manage our money more efficiently, from experts on the subject.

Alejandro Saracho, Director of Financial Education Consulting financial restructuring, He explained that understanding these words, in addition to helping improve relationships with portfolios, also helps people see what resources they have and know what they need to do to reach their goals. How to make the most of

We are bound to know this language and how it works in the context of finance, because everything is connected and knowing these terms allows us to know whether we are losing or winning. We have to learn to manage money and when we do not understand how to manage it, many times we take decisions which are harmful to our pocket.

It is not about learning concepts or memorizing them, but about understanding and applying them to use money wisely.

Whereas, Juan Carlos Cruz, teachers of Banking & Commercial School, He highlighted that finance is something we interact with every day and are always immersed in our decisions, so knowing some of the definitions helps consumers act with greater safety.

from theory to practice

Basic definitions like asset, liability, savings, investment, interest as per experts cat It is important to know what they say because they allow financial behavior to change.

saracho He explained that, for example, liabilities are the debts or financial commitments that the individual has. On the issue of stamps, he explained that it refers to all money earned, such as a salary, additional income, utility, and performance, Which can be understood as ways to get money.

As far as moving around is concerned, it is what is spent and what is needed to live, be that as it may Fixed, variable and ant expenses, and even those of an emotional nature.

Another term is budget which can be defined as a breakdown, bi-weekly, monthly or yearly, of how the money will be used and all the expenses incurred in the month.

In turn, the teacher ebc He stressed that it is very important to know the difference between savings and investment, though saving is accumulating resources, investment is when there is a demand to make these accumulated resources productive and generate returns.

another necessary word is inflation although this is defined as a general increase in prices, it means that what could previously be bought with 100 pesos requires a little more to get the same product this year.

understand the value of money

Another concept that is important to know is the credit and interest rate, as it allows us to know the value of money.

Until people understand that no one lends money without it, it becomes clear what interest is. When that interest is related to a credit card, one realizes that the card is a tool to request a loan of someone else’s money and is not an extension of his salary,” he said.

The counterpart of interest is yield, It refers to what is earned by lending money in order to produce a result or by allocating money to an investment.

organizations help you

Currently, many institutions, both public and private, offer financial education courses and workshops to learn more about these and other topics.

The EBC professor pointed out that government agencies such as Bank of Mexico, driving also offers courses focused on Banks, Insurers and Afores financial education

Fuentes: Bansafey, Condusafe, Clip and Kondinero

Maybe you’re interested: Financial health, is it a matter of beliefs?

Nation World News Desk
Nation World News Desk
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