Money must be one of the greatest inventions of all time. Thanks to money, the work we do can be quickly and easily converted into cash. A farmer in Kerry can buy goods and services from a trader in Dublin, or Dubai instantly. Despite this, it can still confuse people.
Following are six key money lessons every student should know:
- Gross income versus nett income. The money earned is not the money they get to keep. Taxation plays a major part in whittling down those earnings. It is important students understand and plan accordingly.
- Personal credit reports are their most valuable profile. A personal credit report is a record of how people repay loans taken out and becomes part of a personal credit record into the future. A damaged one will restrict, and even end access to credit.
- Simplify budgeting – you don’t need to make money more complicated with more apps. Its really just a question of live, laugh and save! This is where the 50:30:20 rule comes in. Read more
- Compounding is magical – compound interest works to your advantage and against you at the same time. When it comes to borrowing, compounding can result in some of the most expensive borrowing options. But, when it comes to investing, compounding can work wonders.
- Debt costs money – with the rise in popularity of buy-now-pay-later services, some carry credit options. These charge interest, which increases the overall cost of a purchase.
- With investing, patience is key – investing involves risk. Short term investing is more speculation whereas real investing requires knowledge, patience, and time.
Having a grounded understanding of the money system is a core life skill.
MoneyWhizz has developed an extensive library of financial education content and tools for students across Ireland. To avail of this FREE content, please feel free to contact us at info@moneywhizz.org.
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