I am a strong supporter for financial education in school. I think we still have those in the schools today. The saving money kind of financial education. Actually, if we are to look at how the world is evolving today, saving money alone will not be enough, especially when people save but then realised that their savings are not enough anyway, why bother to save?
However, one important thing we need to be very sure would be who will provide the content and would the teachers be equipped enough to teach. Perhaps it’s best that all teachers are also taught financial education during their teacher’s training courses first? Anyway, we have a good suggestion to make financial education mandatory in schools. For those who does not understand Bahasa Malaysia, there’s no need to click on the link, I have done a short summary.
Article in bharian.com.my . Chief Executive Officer for Agensi Kaunseling dan Pengurusan Kredit (AKPK), Azaddin Ngah Tasir said that he hopes the government will make financial education as a mandatory subject in school as well as tertiary education institution. This is to ensure fewer Malaysians are affected by financial issues in the future. He said (translated), “Trends are changing. Just a few years ago, we will only spend money when we are out of the house. Today, we could spend all our money even when we are inside the house.”
He elaborated, “Thus, it’s a need for us to be wise in managing our finances as well as to control ourselves from spending unnecessarily.” Azaddin also said that everyone who starts work must already start planning for their retirement. This early planning is needed because one may be faced with insufficient savings post retirement. The major reason? Savings for retirement needs time and it could not be achieved in a short period of time. Article in bharian.com.my .
There are too many get-rich-quick kind of personal finance materials online these days. Everything seems easy and everyone can get rich fast. There are also those telling everyone that renting is better than buying for example. Yet, not many people understand that the lack of a property is cause of poverty. Post retirement, without any income coming in and one needs to continue paying rental? This is why financial education must include property investment. I repeat INVESTMENT, not speculation.
My personal advice remains the same. First property should just be one which we stay. Earlier article here: Buy to stay first, thats safer Well, hopefully if this financial education suggestion is taken seriously, there will be a good balance of stakeholders without too much benefits from pushing their agenda into the module yeah.
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