Soal No.118 Literasi Bahasa Inggris
Text 1
Many young people will enter adulthood without knowledge and skills in finance. Young people need to have financial knowledge and skills. With these skills, they can make informed choices about their money. Consider these alarming statistics. Young Americans owe over $1 trilion in debt. More than 70% of millenials live paycheck to paycheck. They always run out of money before getting their salary. Young people need financial education.
Financial literacy is the combined knowledge and skills to make responsible financial decisions. It contributes to a sense of financial security and well-being. Knowledge of financial concepts includes saving, investing, spending, and borrowing. It is the foundation of financial literacy. Understanding credit management and asset building is also critical to a healthy financial life. It includes how to reduce debt and avoid scams.
Low financial literacy threatens the well-beingof individuals and families. Without a solid financial foundation, the youth are more susceptible to predatory lending. They also do not know how to manage debts and expenses. As a result, they get to lifelong financial inequity.
Low financial literacy can make people miss wealth opportunities. It reduces acces to higher education and professional development training. When young people lack financial knowledge, they are more likely to become trapped in cycles of poverty and debt. For example, poor spending and borrowing habits often result in low credit scores. In turn, it contributes to higher financial insecurity.
Financial education is fundamental to improving financial health and well-being for our communities. However, developing financial capability is the ultimate goal. Financial capability is what happens when financial literacy knowledge is practiced and applied. It becomes second nature. Financial literacy drives behavior that consistently leads to positive economic outcomes. It gives individuals the confidence to make informed financial decisions. As such, they can take advantage of opportunities and build financial security for themselves and their families.
Text 2
As a teenager, have you ever seen your parents discussing something related to money? When you try to join conversation, do they either switch the topic? Do they say something like "We are doing something important, don't disturb"? Most of us wonder why they do this. Well, you are not exactly financially literate. They think it would be of no help at the moment. 'Financial Literacy' is defined as the ability to "understand and use various financial skills".
This includes budgeting, investing, credit management, and personal financial management. It is considered to be one of the most undervalued skills. Financial literacy will determine a country's future. Financial education is extremely important. It will help you in building wealth, achieving goals, tackling challenges in case of emergencies, and securing your family's present and future!
Involving teenagers in day-to-day money matters, like managing household expenses, helps open their minds to certain financial aspect. Doing so will certainly help them become more responsible towards their spending habits. They will eventually realize how to spend little amounts of money and save as much as possible for when they need it. Money is an essential commodity in today's world. It is, therefore, important to master the concept of money management from the teenage years to achieve financial literacy.
What is the main idea of Text 1?