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