What is financial education? Well, for starters, an excellent question to which there are many right answers, depending on who is asking.

For some, financial education means teaching children to save money, check account balances, and use credit cards responsibly.

For others, it means learning how to invest in the stock market and manage a pension fund.

Whatever definition you choose, one thing is for sure, and we will all agree on that: there is practically no financial education in our schools.

Research by Ipsos recently showed that only 13% of the US population learned about investing in school. 87% of respondents believe that financial education must be studied in school, and 72% believe that it should be already in high school.

In this regard, Classy business women present a summary of the 10 most important lessons of the imaginary subject “Financial Education”.

Financial Education Lesson 1: History of money

Money has a long history, purpose, and way of functioning. To learn how money works today, you need to know how it worked before. Much progress has been made from small round pieces of copper to complicated financial derivatives. It is necessary to understand money to become rich. Important dates stand out in particular:

1913 – The Federal Reserve is formed

1929 – The Great Depression

1944 – An agreement is signed in Bretton Woods

1971 – Nixon repeals the Gold Standard

Financial Education Lesson 2: Understanding the financial report

The financial report is a picture and opportunity of every natural and legal person. If you want to become rich, you must learn to understand all three parts of the financial report: the balance sheet, income statement, and cash flows.

Lesson 3: The difference between assets and liabilities

Many people get into financial trouble because their financial obligations and opportunities find themselves in disproportion. Many people believe that the house in which they live is their property, and it is an obligation because it brings you expenses as long as you live in it. Property is what brings money into your pocket, not what knocks it out. These are obligations.

Lesson 4: The difference between capital gain and cash flow

Many invest in making a capital gain, buying something to sell it quickly at a higher price and make a difference. It’s certainly a legitimate and legal way to make money, but you have to be careful. If you engage in this type of trade without adequate training, which is especially characteristic of financial markets, you can stay short-sleeved. Namely, investing in certain cash flows is something that should be the basis, and capital gains are the icing on the cake. He is the tastiest, but you need to know how to make it.

Lesson 5: The difference between fundamental and technical investment

Fundamental investing is a process that involves analyzing a company’s financial performance and begins with understanding the financial statement. Professional investment is the measurement of emotions or moods in the market using technical indicators. Both methods can be a reasonable basis for a successful venture, and you can use them at the same time, which requires significant financial training.

Lesson 6: Measuring the strength of the property

There is no shortage of investment opportunities in today’s world. The question is, which investment is worth the investment? A key component of real financial education is understanding how to measure whether an investment/asset is reliable or not. One of the best ways to do this is to use Robert Kiyosaki’s B-I triangle, which consists of team, leadership, mission, cash flow, communication, system, legal guilt, and product.

Lesson 7: How to choose competent people

The bearers of all activities are people. That is why choosing the right partner is very important. It is often said that the best way to learn who the right partner is is to have a wrong partner. It would help if you learned from each interaction. A great job can quickly fail if you work on it with a lousy partner. So, choosing a partner as well as choosing team members is key to success.

Lesson 8: Learn which property is best for you

There are four asset classes: business, real estate, securities, and commodities. To become rich, you have to study these asset classes well, choose the best one for yourself, and work on yourself to become an expert for a particular category.

Lesson: Learn when to focus and when to diversify

Ideally, your investments will be diversified entirely into all four asset classes, but it is impossible to become an expert for all classes. So over time, you need to focus on what works best for you. An old proverb says that if you try to please everyone, you will not satisfy anyone. The same can be said for investing.

Lesson 10: Risk minimization

There is a risk in any business. A wise investor knows risk minimization techniques. There are many ways to do this, regardless of the type of investment. So it would help if you learned how and when to do it.


Tiana is a daydreamer and night thinker. She is an entrepreneur who started a company on her own a few years ago. Being a businesswoman is not an easy task, but somehow she managed to succeed and develop successful mindest. She enjoys sharing her tips and trick with her audience, friends, and followers.


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