Esaunggul.ac.id – Financial literacy is the ability to understand and manage finances wisely. For university students, it is more than just the knowledge to manage a monthly financial budget, but also the skill to make smart financial decisions to prepare themselves for the future. Living in a world that is being hit by economic challenges, having a good understanding of finance is very important so that students can live a financially fulfilled life and avoid debt problems.
Sometimes, students are faced with financial pressures, ranging from tuition fees, living expenses, and personal fund management. If they are not equipped with adequate knowledge in managing money, they can later get trapped in consumptive habits and hedonism that lead to debt. Getting into debt without considering the consequences will cause difficulties in the future. Financial literacy equips a person to recognize basic concepts such as budgeting, saving, investing, and debt management.
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Through financial literacy knowledge, students will understand the meaning of responsibility for their finances. Whether the money is the result of their own hard work or given by their parents. No matter how much money is owned, if it is not managed properly, it can be used up in vain. Students usually consider between needs and desires according to their finances.
The importance of financial literacy is related to planning for the future. Students, if they have knowledge about finance, can prepare themselves well. When just finishing college and entering the adult world students are faced with certain economic conditions. Therefore, they start saving to plan investments that will provide long-term benefits. This ability helps students avoid consumptive behavior that affects their financial life after college.
In addition, financial literacy can encourage students to develop an entrepreneurial spirit. Through good money management skills, students are more confident to open business opportunities. Not only does it provide financial benefits but also useful experience. This opens up great opportunities in creating additional sources of income or building their own businesses in the future.
In conclusion, financial literacy is very important for students because it helps them manage their money wisely. Then, they can plan for a more stable financial future, and avoid financial constraints. Thus, students should take advantage of various learning resources to improve their understanding of financial management, in order to live a more secure, peaceful, and financially planned life.
Universitas Esa Unggul is a World Class University
Universitas Esa Unggul is accredited superior based on BAN PT Decree: 2041/SK/BAN-PT/Ak/PT/XI/2024. Universitas Esa Unggul is also ranked as the 14th Best PTS in Jakarta, 43rd Best PTS in Indonesia, and 86th Best National PTN & PTS based on Webometrics.
With support from Arizona State University (ASU), Cintana Alliance supports UEU in realizing its vision to become an international university, as well as providing quality education for students throughout Indonesia.
