We are surrounded by money. We use it every day. But, for many, there is not enough accessible instruction to make a difference. For years, schools assumed parents were teaching money management skills and parents assumed the schools were teaching it. The end result is that many people were never taught the basics of personal financial management.
It is evident that many individuals and families are struggling. Student debt has spiraled to $1.6 trillion, 7 out of 10 households are living paycheck to paycheck, and 50% of households are not able to afford an unexpected bill of $1,500 or less.
With these issues in mind, PersonalFinanceLab.com was born. The focus of our site is to teach the user how to hold onto their money, and to make smarter decisions by using our budgeting game, which covers concepts such as spending, saving, bank statements, debit, credit, credit cards, credit scores, paychecks, and much more.
“Never spend your money before you have earned it.”
Thomas Jefferson
It also provides the user the opportunity to explore an avenue for growing their money and to learn more about the economy in terms of the world around them. This is done through our stock market simulation which allows trades to be made in real time and behaves like a stock brokerage account. Along with buying and selling stocks, users start to understand how current events impact their lives in ways they never considered. Both our budgeting game and stock market simulation have embedded curriculum for instructors, coaches, and teachers. They also provide reporting, competitions, and rankings while meeting the various financial literacy standards.
Our hands-on tools and games/simulations are a great way to let people learn from their mistakes—before they make mistakes!
Confucius said – “I hear and I forget. I see and I remember. I do and I understand”
Here are 4 key fundamentals of financial literacy that we believe are important:
- Learn the value of money, in terms of how long it takes to earn a dollar. This way, when you go to buy something, you will know whether it is actually worth your time.
- Save a percentage of any money received. Having less to spend will force you to make smarter decisions and be more inclined to think through each spending decision a little longer.
- Your savings will start growing and compounding, and can be used for your Emergency Fund and for creating passive income.
- The most obvious: Don’t spend what you don’t have (this is easier said than done).
When talking about, or teaching about money, what is explained is too often not absorbed or fully understood. Emotions can also be a barrier. Money struggles often feel embarrassing or frustrating, hindering understanding and comprehension. While people often know more than they realize. sometimes it takes asking the right questions in a different way, or providing an experience for them to talk about, to ensure long-term comprehension.
With this in mind, we believe the best way to learn about money is by doing.
Xunzi said – “Tell me and I forget. Teach me and I remember. Involve me and I learn”.
Learn more about our fully customizable budgeting and stock games by visiting Content.PersonalFinanceLab.com/demo2019
Quote sources from:
https://www.positivityblog.com/quotes-on-wealth-and-money/
https://steemit.com/money/@bar22oron/money-make-the-world-go-round
Guest Contributor: By Paul Vasey, PersonalFinanceLab.com
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