When I first started the journey of learning about financial education, the terms in financial education was totally like a foreign language to me. I had heard some of those words before but what does it really mean. Those moments were poignant moments where I realized that I need a lot more to learn in this area of study. Through this journey, I have grown as a learner and raring to learn more in financial education.



My financial education begins with the understanding of personal financial statement. One of the first terms that I had learn in financial statement is Assets and Liabilities. These are significant terms one must learn and understand to accumulate wealth.

Assets in simple terms are sources that produce and increase your income. For example, owning a part time home based business, franchise, your own company and various investment sources that produce and increase your income are assets. Owning a rental property that produces a positive cash flow income can be considered an asset. Liabilities in simple terms are sources that create output and reduce your income. Loans, bad debts and expenditures that create output to your income generated are liabilities. Owning a property that produces negative cash flow can be considered a liability too.

A metaphor that I can use to describe assets and liabilities is the factors involved in determining the growth of a tree. A tree needs sunlight, air and water to grow. With right amount, it will grow and bloom with green leaves. Similarly, assets need income generating sources such as business and real estate investments for the assets to grow and resulting in the individual owning assets to become richer. A growing tree with healthy green leaves looks more appealing. An individual with rich in assets tends to look more confident and happy.

With lack of sunlight, air and water, the tree will not grow much and the individuals with more liabilities will become poorer and poorer. Individuals with more liabilities tend to be unhappy and less confident when they realized that liabilities are mounting.

One way such problems can be eliminated is through financial education, such as understanding a financial statement and playing educational board games such as cashflow 101 and applying the lessons learn in real life. One has to realize that the financial education is continual and the individual must be persistent and consistent in making the effort to increase the assets column than the liabilities column in the financial statement. I heard before that if one has money, invest wisely. If one has time, invest in your education.

With this concept of focusing the increase in assets column, one has great potential to become richer. With dedication to self develop such as reading self development books, networking and learning from others, playing financial educational board games and applying it in real life by starting small like home business, one can slowly develop into better learner in financial education area. If one love learning, the individual will most certainly enjoy and grow well as a person through this learning experience.