The importance of getting a financial education

Why is financial education important? How can getting people educated about personal finances change their lives, the lives of their families, and even the welfare of the nation?

Personal

Financial education is a journey towards helping develop both yourself and other people.

Financial independence is achievable for everyone in their lifetimes, and for most within a decade or less with a disciplined, well-structured process.

Helping people grow brings about personal joy and fulfilment

People

The sad truth is, financial education is lacking in our schools and in our homes. Household debt and bankruptcy rates, especially among youths, are rising.

Many do not have RM1,000 for emergencies, let alone six months worth of savings. Life insurance is often purchased with not really knowing or matching an individual’s protection needs.

Investments too are often made haphazardly in unregulated investment products which often go bust. Estate planning is often non-existent leading to a lengthy and expensive probate process, and unclaimed monies.

We need quality, professional financial education for Malaysians of all levels and strata of society. When people grow, the nation develops.

Professionalism

Financial education needs to be well-designed and follow global standards with an emphasis on professionalism, competency and professional practice.

The focus on ethics is especially important to make sure clients are treated fairly and with their best interests at heart.

Financial professionals, especially those focused truly on clients’ needs instead of their own pockets, are sorely lacking in Malaysia.

It is only a matter of time as consumer awareness increases and regulatory changes move Malaysia to a fee-based environment.

This article first appeared in https://mypf.my