Should young people spend the money of the future? There are many opponents and supporters. Do young people dare to borrow money to drive economic growth or bring financial risks? In contrast to the United States, where consumer finance is super-developed, how should the balance between financial innovation and risk regulation be handled? Finance and market economy are the only way for individuals to achieve freedom and liberation. Guiding young people to properly consume and moderately use financial products not only promotes personal value growth, but also promotes social prosperity and national economic growth.
The meaning of finance is not only to help Wall Street make money, but more importantly is that it can free more poor and young people. Life and death are the problems that human beings have faced since ancient times. The solution of the ancients was to use more children as tools for intertemporal investment. The next story is about usury. When you hear the word “usury”, you must feel very negative right away, but the results of a professor at the University of Chicago have shown that community crime rates that allow usury to exist are lower. The reason is that allow usury to exist can provide financial tools such as intertemporal loans to help people weather the storm when people are in crisis or difficulty. Although the cost is high, it means the interest is high, it can help you through the difficulties, so that you do not go to the law, there is no need to rely on robbery or theft to get life-saving money, which will of course reduce the crime rate. The concept is that the so-called financial markets and financial products are to help you reconcile the contradiction between “now demand” and “future money.”Click Here For More.
People have a negative view on consumer finance, or because financial education in China’s education system is far from enough, which leads many people to be afraid of hearing consumer finance and borrowing money, because it seems that borrowing money is bad. It is not enough to spend the money in today’s hands, but also to borrow the money of the future, in violation of the financial principles we have been familiar with. However, with the financial market, as long as a person borrows money and does not exceed the income expectation of a lifetime, then there is no violation of the principle of “paying for the income”, but only through the help of financial instruments, turning part of their future income into the money you can spend today. In other words, as long as the money borrowed by young people does not exceed the discounted value of future income, it is still in line with the principle of “paying for income”, but it is an extension of this “income”, not only the past income and today’s income, it also includes future income expectations. This is a basic common sense in the financial field.