Why teach financial literacy

Its beneficual to your everyday life and if you want to be rich, you have to be financially literate (knowing what is coming in and going out). Only buy assets. It seems simple, but it's not that simple. When you're in debt, your answer is to make more money, but more money can sometimes compound your problems. An increase in cash only results in an increase in spending. People can be very intelligent but illiterate when it comes to finances; for example, they learn how to work hard for money but not how to make their money work hard for them. The rich who understand the difference between an asset and a liability get richer. The middle class are stuck because they treat their home like an asset instead of a liability. Concentrate on buying income-producing assets.

Wealth is measured in the cash flow of the asset column compared with the expense co

lumn when your asset column overpowers your expenses column you are wealthy even if you are not yet rich. Financial aptitude: what you do with the money once you make it, how to keep people from taking it, how to make it last longer, how to make money work harder for you. Income is the money received as a result of normal business activities of an individual or business. An income statement or profit and loss statement measures income (money coming in) and money going out.