Asian Journal- The Filipino-American Community Newspaper

WHILE unemployment rate has recently hit 15% in some locales, foreclosures are still on the rise, and job security has never been much a question for the last few decades, financial education has become a necessity for survival.

Amid the economic chaos that beleaguers us, everyone likely will someday face a difficult financial situation, whether large or small, that requires time and money. Having a good understanding of daily cash inflows and outflows in personal finances will help make tough situations less stressful and easier to handle.

According to MSN Money, here are some statistics about American household finances:

43 percent of American households spend more than they earn annually;

$8,000 is the average amount of household credit card debt; bankruptcies have doubled between 1998 to 2008.

Financial Education

Obtaining a good financial education is easier than ever with the abundance of information on the internet and radio talk shows. Financial gurus like Dave Ramsey, Clark Howard, and Suze Orman provide good advice on managing personal finances. Financial advisors are also playing a more critical role in educating the public on financial issues.

The most important part of financial education is learning to properly budget household debt and expenses. Measuring all monthly cash outflows can help determine where cuts are needed to save money. Tracking all earned income is also important for budgeting.

Bankruptcy is usually not the best option when trying to correct a bad financial situation. In 2005 changes were made to US bankruptcy law that has placed more restrictions on individual filing; additionally, not all debt is absolved through bankruptcy.

But even if bankruptcy becomes an ultimate choice, in the long run, the habits that caused the financial breakdown need to be curved or life simply becomes a cycle- a cycle of overspending and financial meltdowns. Discipline is the key to ultimately finding some sort of financial independence.

Many colleges and universities offer personal financial classes at low tuition rates for in-state residents. These classes may also be offered online, providing a convenient way to learn about credit cards, revolving debt and ways to improve financial health.

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Evangeline can be reached at her marketing location at the Ground Floor of Eagle Rock Plaza (in front of Jollibee), 2700 Colorado Blvd., Los Angeles, CA 90041 or at her business address at 655 N. Central Ave., 17th Flr., Glendale, CA 91203, phone number (323) 356-3803 or (323) 254-6787.

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The purpose of this article is to provide information of general interest to our clients and prospective clients. The information provided is general in nature and should not be considered complete information on any product or concept described.

( www.asianjournal.com )

( Published on July 25, 2009 in Asian Journal Los Angeles p. C6 )