Consider the Maslow pyramid of hierarchy of needs, what level would financial education fit in?
How financial literacy dominates physiological and safety needs?
Unless you are living in an isolated society (few chances you are reading this article), you would have experienced that your basic physiological needs (level 1 of the pyramid) are mostly met by your ability to ‘PAY’ for water, food and shelter.
Safety needs (level 2) in our modern societies are no longer only defined by personal, emotional and health well-being. Financial safety is underlying
Though as kids, we are being prepared to address our elementary needs, few received a proper financial education. This, more often than we would think of, leads to a lack of financial awareness managing our first salary, investing in a shelter, starting our business, thinking about our financial future.
Budgeting, saving, investing, are the main elements of financial safety, yet they seem to be privileged tools for the lucky few.
Individuals’ money raising capacity relies on; working hard, working smart, earning dividends and increasing capital, being an annuitant, finding new collaborative ways of living, etc. all of it to reach the highest levels of the pyramid (or at least to ensure the base is covered!)
But how can we move on form level 2 of the pyramid without a proper financial education enhancing our financial safety?
By learning the basics about money! Reducing the stress induced by the lack of it (the abundance as well), or its mismanagement.
We encourage you to start by finding what your financial profile is, your attitude towards your personal cash flow management.
Let’s address our ‘modern’ daily fundamental need! Let’s speak about Financial Education!
In our next article we will further develop our relationship to money and how it influences our decisions.