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4: Understanding Financial Management

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    Education is one of the few things you can buy that will last a lifetime. It can’t rust, corrode, break down, or wear out. It can’t be stolen, repossessed, or destroyed. Once you have a degree, no one can take it away. That makes your education a safer investment than real estate, gold, oil, diamonds, or stocks.

    Higher levels of education are associated with the following (Alzheimer’s Association 2012):

    • Greater likelihood of being employed
    • Greater likelihood of having health insurance
    • Higher income
    • Greater job satisfaction
    • Higher tax revenues for governments, which fund libraries, schools, parks, and other public goods
    • Less dependence on income support services, such as food stamps
    • Greater involvement in volunteer activities

    In short, education is a good deal for you and for society. It’s worth investing in it periodically to update your skills, reach your goals, and get more of what you want in life. In this module, you will learn about the guidelines important to creating your own financial plan so that you are able to confidently invest in your future.

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    4: Understanding Financial Management is shared under a CC BY license and was authored, remixed, and/or curated by LibreTexts.

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