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