5 Financial matters that school have never taught

Financial literacy is an important matter in living, however, skills and literacy about finance have never been seriously taught at school! This time, ACU PAY gathers 5 financial matters that the school has never taught. The sooner you know, the better.


1. Financial Statement Subject: Plan to have money for saving

To achieve financial goals, the first thing that you need to start is saving which is always overlooked and not received attention at the first phase of working. However, the beginning of work is the perfect time for you to think about saving since you do not have many expense burdens.


To make you see a clear picture of your financial status, making a personal financial statement is required. It can be divided into 2 parts;

1. Record of Income – Expenses

The record of income and expenditure will help you see both outflow and inflow of financial liquidity, and know which expenditures should be cut off.

2. Know how to calculate the financial statements

Knowing how to calculate the financial position of how much wealth we have such as calculating how much assets you have more than debt.

Then start setting savings targets, starting with emergency reserves money of at least 6-12 times the expenditures and have a saving of at least 10% of their income.

2. Investment Subject: Generate Passive Income

In addition to the regular job you do in exchange for money, there’s one thing that you can use money to work for you: investing in stocks or funds called Passive Income. If we know what the basic principles of stocks or funds are, and what kind of investment you have to make, you will understand the concept of investment more. The sooner you know it, the faster the magic of compound interest will happen. As Albert Einstein once said, “Interest compound is the eighth wonder in the world. whoever understands it, gets the benefits from it. Who doesn’t understand it, will miss the chance.”

The magic of compound interest is to reinvest the interest or profit we get back into our investment. Our next return on investment will be based on principal plus interest earned from the previous period, and keeps compounding up.

3. Debt Subject: The difference between Rich Debt and Poor Debt

You need to understand that debt isn’t always a bad thing if you can differentiate the two types of debt.

  1. Rich Debt

Debt helps generate more income for us, like loans for business purposes, which will generate cash flow to enrich our future.

  1. Poor Debt

Debt that will burden us with more expenses, such as

  • Consumption Debt

Such as credit card debt, personal loans, and non-performing loans, which these loans have not added value to you and are still high in interest rates.

  • Occupational and Basic Factors Debt

Such as student loans, home loans, and car loans. These debts are necessary because they arise to spend on basic living factors.

However, before you start making these types of debt, it’s important to evaluate whether your income levels are ready for this type of debt because they take a long time to repay, which can affect your financial liquidity.

4. Taxation Subject: Cannot avoid but can be planned

When you earn income, taxation is inevitable. Without good planning, it can lead to unnecessary over-taxation, which, if we know how to plan taxes, will simply increase our savings.

Here are some examples of taxes that school have never taught 

  • Invest in RMF and SSF 
  • Invest in Provident Fund
  • Social Securities
  • Donation for tax break
  • Insurance

5. Retirement Plan Subject: Future Risks

People think of retirement as something that will be a long time before it arrives or a future event. In fact, when it comes to that day, not being well prepared from a young age can make your life that has to stop working many times harder. Thus, planning retirement is another important thing.

In addition, future risks should also be considered, including accidents, and illnesses, which can cause serious problems to your pocket money. The best way to protect against risks is such as individual insurance like health, accident, and life insurance which may help to reduce your expenses.

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