| When I first started the journey of learning | | | | estate investments for the assets to grow and |
| about financial education, the terms in | | | | resulting in the individual owning assets to |
| financial education was totally like a | | | | become richer. A growing tree with healthy |
| foreign language to me. I had heard some of | | | | green leaves looks more appealing. An |
| those words before but what does it really | | | | individual with rich in assets tends to look |
| mean. Those moments were poignant moments | | | | more confident and happy. |
| where I realized that I need a lot more to | | | | |
| learn in this area of study. Through this | | | | With lack of sunlight, air and water, the |
| journey, I have grown as a learner and raring | | | | tree will not grow much and the individuals |
| to learn more in financial education. | | | | with more liabilities will become poorer and |
| | | | poorer. Individuals with more liabilities |
| My financial education begins with the | | | | tend to be unhappy and less confident when |
| understanding of personal financial | | | | they realized that liabilities are mounting. |
| statement. One of the first terms that I had | | | | |
| learn in financial statement is Assets and | | | | One way such problems can be eliminated is |
| Liabilities. These are significant terms one | | | | through financial education, such as |
| must learn and understand to accumulate | | | | understanding a financial statement and |
| wealth. | | | | playing educational board games such as |
| | | | cashflow 101 and applying the lessons learn |
| Assets in simple terms are sources that | | | | in real life. One has to realize that the |
| produce and increase your income. For | | | | financial education is continual and the |
| example, owning a part time home based | | | | individual must be persistent and consistent |
| business, franchise, your own company and | | | | in making the effort to increase the assets |
| various investment sources that produce and | | | | column than the liabilities column in the |
| increase your income are assets. Owning a | | | | financial statement. I heard before that if |
| rental property that produces a positive cash | | | | one has money, invest wisely. If one has |
| flow income can be considered an asset. | | | | time, invest in your education. |
| Liabilities in simple terms are sources that | | | | |
| create output and reduce your income. Loans, | | | | With this concept of focusing the increase in |
| bad debts and expenditures that create output | | | | assets column, one has great potential to |
| to your income generated are liabilities. | | | | become richer. With dedication to self |
| Owning a property that produces negative cash | | | | develop such as reading self development |
| flow can be considered a liability too. | | | | books, networking and learning from others, |
| | | | playing financial educational board games and |
| A metaphor that I can use to describe assets | | | | applying it in real life by starting small |
| and liabilities is the factors involved in | | | | like home business, one can slowly develop |
| determining the growth of a tree. A tree | | | | into better learner in financial education |
| needs sunlight, air and water to grow. With | | | | area. If one love learning, the individual |
| right amount, it will grow and bloom with | | | | will most certainly enjoy and grow well as a |
| green leaves. Similarly, assets need income | | | | person through this learning experience. |
| generating sources such as business and real | | | | |