Tag: financial literacy

Do you remember the man who was supposed to marry Rose in Titanic? He dressed exceptionally well, had slick brown hair and was from a family of great wealth. His character was based on the life of a man named Caledon Hockey. He survived the shipwreck but not the Wall Street Crash. When the stock market fell in 1929, Cal’s money and everyone else’s plummeted in value to the point that people were bringing horse carriages of cash into town only to afford a loaf of bread.

Almost half of Romanians are in debt, while 39% say that they don’t pay their debt on time, and 29% never create a budget. These figures, based on the most recent national studies, reflect Romanians’ values and financial literacy, but they can also represent the starting point of a conversation about "good debt" and "bad debt."

Money is essential in our Western world. It allows us to purchase the necessities of life—food and shelter, for instance. It pays the bills for heating and cooling. There may even be enough for some luxuries.

From government officials to leaders of large corporations and from heads of public institutions to small private entrepreneurs, using the revenue and expenditure budget has become a common practice. The question we will try to answer in this article is whether and in what way this financial instrument finds its utility in the family space as well. How do you build a family budget?

In order to obtain money, along with the facilities offered by specialised institutions (banks, credit unions, mutual assistance services), many people resort to a series of ad-hoc financial relations, known as “personal loans”.

Are you financially literate? If your financial management strategy is one of the following four, then the answer is probably no.