The Importance of Financial Education and Humility in Today's World

If you've studied or heard about financial education, you know that living to impress others—by spending all your income or even more—can ruin your personal finances. This is increasingly common today, especially due to social media, where ostentation is rampant. As described in the book *The Psychology of Money*, spending money to show off how much you have is the quickest way to run out of money.

You probably know someone who earns less than you but frequently buys luxury items to appear wealthy. This happens because these individuals seek external validation. They want others to see and think, "Look, she bought the latest iPhone" or "He has a new car." Often, this is done at the cost of debt, with these purchases becoming the main topic of conversation.

These extreme examples help illustrate that the issue extends beyond just expensive purchases. As humans, we have a tendency to seek social acceptance, and many prefer to display success through consumer goods rather than through real professional or financial progress.

I’m not saying that financial education means living without a car or a new phone forever. It’s about having priorities and understanding that to buy more expensive things, you need to have the money for them. For example, many people who earn little prefer to finance an iPhone over 36 months rather than saving for a course that could enhance their resume and increase their earning opportunities.

It’s important to clarify that the problem isn’t the iPhone itself but the improper use of credit to acquire an item that isn't a priority. If you don’t have an emergency fund yet, avoid accumulating unnecessary debt, don’t use your credit card for non-essential items, and steer clear of unnecessary installments.

You might not be spending to impress others and still find it hard to organize your finances. This issue could be related to instant gratification—the mindset of "you only live once." This biological impulse comes from our ancestors, who faced constant uncertainties and needed to live in the moment without thinking too much about the future. Today, life expectancy is much higher, and we must learn to think long-term, even if our biology pushes us toward immediate gratification.

Financial education is an ongoing practice, not a task to be done once a year. Just as no one is born knowing how to read, drive, or handle money, learning to manage your finances is a continuous process. Financial management is a marathon, not a sprint. It requires discipline and consistency.

You often start out in debt and disorganized, and the first step is learning to spend less than you earn, cut expenses, and find ways to increase your income. After paying off debts and building an emergency fund, the next step is to invest for the long term to secure your retirement and other future goals.

Throughout this journey, various situations will require careful planning, such as buying a car or making a down payment on a house. Maintaining discipline and humility is crucial. Many people, when they begin practicing financial education, end up wanting to show off their achievements, which can lead to unnecessary spending and financial problems.

The power of silence in finances is a valuable strategy. Sharing your financial achievements can generate envy and loan requests, which can strain relationships. As discussed in the book *The Total Money Makeover*, lending money to friends or family can harm the relationship and not resolve the other person’s financial issues.

Staying humble and living within your means is essential. The book *The Psychology of Money* says that "once you reach a certain level of income, all you need to do is not feed your ego," which is excellent advice. Money should be used to ensure financial freedom and security, not to flaunt status.

So, live for yourself and not for others. There’s no need to prove anything to anyone. Focus on your financial education journey, enjoying each step of the process. If you want to share your experience, feel free to comment below. Those who have read this far are likely interested in personal finance. And remember, financial education is an investment in your future, not a show for others.