Financial Education - Characteristics related to the book value of income and money

It is not a secret, that the book value of income and money were a complimentary or a gift input, earning money through work effort increases the probability of not expecting anything given away, and on the contrary allows us to return to our homes with earnings from work and this is interpreted by our brain as actions that we are not losing money.

Although we may not be aware of the above, our brain can automatically choose how to manage money, and it does so taking into account criteria more related to emotions than to reason, so we do not always make the best economic and financial decisions.

At some point in our lives we have heard that mathematics is exact, and if we analyze in theoretical terms, it is so, but when it comes to resources such as money, it is very common that, for example, a certain currency does not have the same value for all people.

This can be explained if we take into account that the theories developed by economists explain that the way in which we spend, save or invest our money depends on emotional rather than rational aspects.

In other words, when it comes to managing economic resources, our brain makes decisions subjectively, influenced mainly by feelings, tastes or opinions, which is why this way of deciding often causes problems in our financial health, which could be avoided if objective criteria were taken into account.