Essay On Importance Of Financial Education

According to Wikipedia

, financial education is the training (both formal and otherwise) that teaches the set of skills and knowledge that allows an individual to make informed and effective decisions about financial resources and future. Financial education is becoming increasingly important not only for breadwinners or parents but also for students; our future leaders. This comes in the wake of a society that requires not only intelligent but also streetwise students who can financially plan for and secure their tomorrow from today. Now more than ever, the onus of making sound financial decisions is increasingly resting on the shoulders of students as there is a higher prevalence of retrenchment, failed pensions, unpaid salaries, rising interest

Financial education teaches students practically the old saying that “when life gives you lemons, make some lemonade”. Also, financial education teaches students to build a wealth plan that is personalised to fit their individual needs, beliefs, customs and values. Peoples’ interests, hubbies and values differ and simply following financial advice given by someone who knows little to nothing about who students are and what values they have may end up misleading them, leading to dire consequences. Financial education is therefore a form of self-defence against some life-damning advice given by people on financial decisions that have no fit in the student’s life. In recent years, we see the bar of financial prodigies being raised.

Stock exchange may also provide facilities for issuance and redemption of securities and other financial instruments. Stock exchange has been known to be the one-stop gateway to the knowledge of basic financial concepts and important in building financially proficient students who become great entrepreneurs of tomorrow. The Nigerian Stock Exchange, founded in 1960 has been known to shape lives and serve as a form of profit-yielding savings to the masses and a way of securing people’s future. An increasing number of people are now buying securities to secure their future. However, with the recent downturn of economy globally and a snowballing number of businesses folding-up and economies collapsing, there has been increasing need for the knowledge of patterns and trends going on in the stock market which is a form of litmus test of the economy of a nation. Hence, a need for financial education so as to ensure the consistent churning out of students who fully understand these trends and adjust to them promptly, allowing them to weather the storm of the economic downturn and rise from its ashes. Having 188 active companies and 61 bonds, the Nigerian Stock Exchange is the