Abstract

The discourse of spending is important if finance is of concern. Those who save money realize the fact that wise spending leads to saving and hence investing. A household that spends unwisely can end up complaining on insufficient funds attained. Governments and organizations which spend unwisely will always cry for budget deficit. Therefore this paper provides a discussion on the importance of financial education (financial literacy) in making informed decision on spending. The paper exemplifies the use of mobile phones food, fuels, and goodwill as among the key aspects which need to be looked at, while utilizing our money. The first part covers the introduction which reveals the definition of financial education as opposed to financial statement analyses (FSA) and or accounts information (AI). The second part reveals the importance of financial education to individuals, governments and financial institutions. The third part is the challenges for attaining financial education and examples that reveal the importance of financial education. The fourth part is the conclusion and recommendations. The paper concludes that while income attained at any level is important, most suffrage related with insufficient income in many house holds is due to poor spending caused by lack of financial education.

Key words: Financial education, literacy, spending.