Hello friends of Project HOPE, a very good day to everyone. Today I would like to bring up a topic that I consider fundamental and that, although it is something we see every day, we often do not pay it the attention it deserves. I'm talking about financial education, especially when we talk about avoiding falling into the trap of bad debt.
Debt in itself is not a bad thing, but the problem is not differentiating between a debt that benefits us and one that harms us. For example, a debt to buy a house that can then be rented or an investment in education that increases our skills are examples of good debts. On the other hand, debts we accumulate to finance a lifestyle we can't afford, like maxed out credit cards for things we don't need, are the definition of bad debt.
The detail is that, unfortunately, in most countries we are not taught to manage our money from a young age. On the contrary, it seems that the system is designed so that we fall into these traps. Banks and financial institutions know how to tempt us with promotions, minimum installments and easy loans, but they never explain the real impact of compound interest or what it means to always live in debt.
The worrying thing is that this not only happens in Latin countries, but throughout the world. Instead of educating us on how to manage our income, excessive consumption is encouraged, because in the end, the current economic system depends on us continuing to spend, even if that means going into more debt than necessary.
A clear example is purchases with credit cards. Many don't stop to think that what seems like a deal can turn out to be a burden, as interest can double or triple the original cost. And what happens next? We end up trapped in a cycle of paying minimums, while the debt grows out of control.
The solution is not to demonize debt, but to educate ourselves. Learning to manage our finances, identify priorities and avoid unnecessary expenses is key. Furthermore, understanding how interest works and having a clear plan to get out of bad debt is essential to live with peace of mind.
In my opinion, financial education should be a mandatory subject in schools. Because, in the end, knowing how to manage our money gives us freedom, and that freedom is something we should all have.
This is my perspective. What do you think? Greetings.
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Upvoted 👌 (Mana: 6/7) Get profit votes with @tipU :)
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Gracias por el apoyo.
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