The Concept of Money

Nov 8 , 2025
By Kidist Yidnekachew

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The demand of modern life places a heavy burden on every individual to be their own chief financial officer. We are expected to navigate a constant stream of complex decisions from managing credit, decoding investment platforms, and strategising for a decades-long retirement yet, for the vast majority, the fundamental principles of money management remain a frustrating mystery. This knowledge is too often relegated to specialist tracks in business or economics, leaving most citizens to learn through painful trial and error. The result is a silent, systemic failure: an epidemic of financial anxiety, paralysing debt, and squandered potential. I believe this lack of preparedness is a monumental educational oversight, and that comprehensive financial education covering the essential pillars of saving, strategic spending, and long-term investing must be integrated into the core of school curriculum starting at an early age to equip every student with the tools for lifelong economic security.

The urgency of this demand is perhaps best illustrated by my own journey of delayed understanding. Honestly, it's profoundly embarrassing to admit that this critical knowledge about budgeting and wealth-building was only truly acquired in my early thirties. That realization hit me after years of financial carelessness, driven by a simple cycle: momentary impulse spending and a complete lack of financial foresight.

I remember the day I decided I have had enough.

The decision to break that cycle which didn't come from suddenly receiving a big inheritance or a huge raise; it came from a simple, internal reckoning that forced me to take control. What followed was an intense, self-directed crash course in fiscal responsibility, fueled by countless hours of watching videos and diving into online resources about saving, guilt-free spending, and, most importantly, investing. That this foundational wisdom the practical "science and psychology" of money had to be sought out haphazardly, rather than being delivered systematically through formal education, highlights a critical, monumental gap in our preparation for life. Current educational structures operate under the flawed assumption that financial literacy is an optional, skill to be specialised.

For students who choose not to pursue finance or business on campus, the core principles of wealth creation remain an abstract concept. Yet, financial decision-making is a universal requirement, affecting every career path, income bracket, and family structure. The core pillars of this essential knowledge are not arcane theories; they are simple, actionable skills that should be as fundamental to navigating society as reading and arithmetic. Learning early on to consciously segment income, allocate funds for necessities versus wants, and designate resources for future growth profoundly transforms the relationship an individual has with their money.

One of the most profound lessons I learned was the concept of purpose the "why" behind every cent. Without a clear goal, money is a passive object, easily dissipated by fleeting desires. If there is no defined destination for your savings, whether that is a large investment, an emergency fund, or even a smaller, cherished goal like a vacation, then financial progress will inevitably stall. For years, I rationalised small, daily expenses away, convincing myself that since my small paycheck couldn't buy anything big anyway, there was no point in saving just a little. I didn't bother to save as little as 20 Br, thinking it was trivial. However, the simple, powerful arithmetic is undeniable: saving that 20 Br daily accumulates to 7,300 Br over the course of a year. That is enough for new clothes, or a small but crucial addition to an emergency reserve.

This realisation transforms careless spending into cautious allocation, giving every small monetary unit greater weight and a clear destination. A mandatory financial curriculum would also decisively dismantle the pervasive misconception that one must earn more before one can manage better. This destructive line of thinking traps millions in perpetual under-saving, as they wait for an elusive higher salary before practicing discipline. But true financial freedom is not about the size of the paycheck; it’s about the effectiveness of the percentage that is saved and invested.

Introducing young students to the concept of investment, the idea of making your money "work for you" demystifies a process often seen as exclusive to the wealthy. It plants the seed of compound growth early, enabling even those with modest incomes to build a significant foundation over time. If this perspective were instilled in school, students would enter the workforce with a proactive, rather than reactive, approach to their earnings, focused on building assets rather than just maximising consumption.

In conclusion, the time for financial education to be an elective luxury is long past. By introducing mandatory money management classes at an early age, schools can preempt the debt crises and financial illiteracy that plague adult populations. This education is not merely about balancing a ledger; it’s about teaching behavioral science, long-term goal-setting, and personal accountability. It provides a roadmap for students to transition from being careless consumers to thoughtful stewards of their wealth, capable of achieving long-term goals like financial independence and security for their families.

The lessons I learned in my thirties certainly sparked a positive change, proving it's never too late. Yet, equipping the next generation with this indispensable knowledge is the single most responsible investment we can make. It secures both their future well-being and the economic stability of our society. Financial education is the crucial head start they truly deserve.

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PUBLISHED ON Nov 08,2025 [ VOL 26 , NO 1332]

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