Money Lessons Not Taught in School
In life, you spend your first 18-20 years in school. You may spend longer in school. The hope is to have a good education, go out into the world, and be able to create income and value within the world. One thing that is missing is a financial education. Schools miss out on not teaching students about money.
The concepts of taxes, compounding interest, income producing assets, how to use money, and even busting the myths that people need to work till 65 are all things not taught in school. These are things that should be taught when students are younger.
Lesson #1: The Power of Compounding Interest.
This concept of compounding interest is one of those money lessons not taught in schools. It shows students that an avalanche can start small with a snowball.
Retirement is not about doing nothing. Being free to do whatever you want without the need of income producing work is financial freedom. This is something that should be taught to students.
Lesson # 2: Retirement is not at 65
Seeking Financial Independence
Financial independence gives students an idea or a concept to seek. It allows them to not have to work mindlessly at a job they do not enjoy until 65. Then they will have the rest of their life to enjoy their hobbies and passion.
Lesson # 3: Owning Income Producing Assets Owning assets can be better than a job. It can bring income to you without even working. You have put in the hard work, and now it is time for that hard work and your money earned to work for you.
Lesson #4: Taxes
If taxes were part of a financial literacy program in school then people would be able to take advantage and save money on doing taxes. Alas, it is not a money lesson taught in school.
Living well for less is simple for most and hard for a lot of people. You just have to minimize your spending. If you can keep your spending down you can live a life without having to work for more income. Then you can pay less taxes.
Lowering those Taxes
Lesson #5: Where to invest your money?
As technology advances, there are many opportunities to invest in stock, bonds, and real estate. Leaving university, most people are ill equipped to be able to know what they can do with their money. Investing helps turn money into a tool to use, grow, and work for our futures.
Warren Buffet put it this way “if you don't find a way to make money while you sleep, you will work until you die.”
Time to Start Investing
Swipe Up to learn More ABOUT Money Lessons Not Taught in School
For More Posts Like This Visit The Frugal Expat