You can put a price tag on the value of a personal finance education: $100,000 (2024)

FAQs

What is the value of financial education? ›

Financially literate people are generally less vulnerable to financial fraud. A strong foundation of financial literacy can help support various life goals, such as saving for education or retirement, using debt responsibly, and running a business.

Ninety-three percent of millionaires said they got their wealth because they worked hard, not because they had big salaries. Only 31% averaged $100,000 a year over the course of their career, and one-third never made six figures in any single working year of their career.

Personal finance is essential for meeting your short-term and long-term financial goals. With household debt rising, inflation impacting household budgets, and the ebb and flow in global financial markets, managing personal finances is more important than ever.

Students who are required to take personal finance courses starting from a young age are more likely to tap lower-cost loans and grants when it comes to paying for college and less likely to rely on private loans or high-interest credit cards, according to a study by Christiana Stoddard and Carly Urban for the National ...

That we remember, as Einstein said, that the true value of education “is not the learning of many facts but the training of the mind to think.” So what if your kid has a fancy piece of paper on their wall or a great GPA? If they can't think, what's the point? If they have smarts but lack wisdom…

It helps people become better citizens, get a better-paid job, shows the difference between good and bad. Education shows us the importance of hard work and, at the same time, helps us grow and develop. Thus, we are able to shape a better society to live in by knowing and respecting rights, laws, and regulations.

Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.

The median salary for Americans is around $70,000 a year, according to the most recent census data from 2021. A salary of $100,000 a year, with the assumption that you are an individual without dependents, would classify an individual as upper-class — but many of these people don't feel rich.

Rich people often find themselves poor after making bad financial decisions. According to a blog by renowned penny stock investor Timothy Sykes, the average millionaire goes bankrupt at least 3.5 times. The reasons rich people go broke are not all that different than the reasons anyone goes broke.

#1 Don't Spend More Than You Make

When your bank balance is looking healthy after payday, it's easy to overspend and not be as careful. However, there are several issues at play that result in people relying on borrowing money, racking up debt and living way beyond their means.

What are the 5 basics of personal finance? ›

There's plenty to learn about personal financial topics, but breaking them down can help simplify things. To start expanding your financial literacy, consider these five areas: budgeting, building and improving credit, saving, borrowing and repaying debt, and investing.

Finance can be easy to learn if you are willing to seek out informative content from books, podcasts, videos, blogs, and even professionals and then invest some time soaking up knowledge.

One thing that's for sure is the high amount of math you will need to study. Finance is a mathematical discipline, so if you aren't as comfortable with math as with other ways of thinking, you may find it more challenging. Additionally, finance also makes use of a vast, highly specific vocabulary.

A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.

Financial literacy is universally essential for all students, regardless of their background or future career path. It equips them with the knowledge and skills necessary to navigate the complexities of personal finance, make informed decisions, and achieve financial security.

Research has shown that investors with a financial advisor accumulate more savings over the long haul¹ and that they realize higher returns.

Value is the monetary, material, or assessed worth of an asset, good, or service. "Value" is attached to a myriad of concepts including shareholder value, the value of a firm, fair value, and market value. The process of calculating and assigning a value to a company or an asset is called valuation.

The Economic Benefits Of Education

Higher education can lead to better job opportunities and higher income. On average, a person with a bachelor's degree will make $765,000 more in their lifetime than someone with no degree.