Saving needs to be serious, only borrow when money can make money

(Từ trái sang) Anh Lê Ngọc Anh Khoa và ông Trần Lâm Bình tại talk show chiều 23-3 - Ảnh: THANH HIỆP — (From left to right) Mr. Le Ngoc Anh Khoa and Mr. Tran Lam Binh at the talk show on the afternoon of March 23 - Photo: THANH HIEP

At the program, two speakers, lecturers from New World Education Academy, including Mr. Tran Lam Binh, a stock expert, and Mr. Le Ngoc Anh Khoa, a master's degree holder in finance from Houston, answered many questions from young people about finance.

Financial planning is an important skill

Mr. Lam Binh said that one of the basic and important skills that everyone needs to have is financial planning, including planning and determining their financial goals.

"You have to calculate how much your monthly income is, what your monthly expenses are, and whether you need to increase your income or reduce your expenses," he said.

Meanwhile, Mr. Khoa suggested that in order to plan appropriate finances, young people can determine what kind of person they want to become in the next 1 to 3 years. To achieve that goal, they need to learn and improve themselves, including finances.

"However, planning will also have risks because life is always changing and fluctuating in ways we cannot predict. Therefore, you must also have a risk prevention plan," said Mr. Khoa.

Mr. Khoa suggests that young people should divide their monthly income into regular expenses, and use the rest for savings and investment. In particular, spending must always be lower than income, and only prioritize what you need.

"You should reduce the things you only want, and remember to always save before spending, not spend first and save later. You can put money in a piggy bank, deposit money into an online bank automatically every month... You need to be disciplined in saving," he emphasized.

Các diễn giả đã giải đáp nhiều thắc mắc của các bạn trẻ về tài chính - Ảnh: THANH HIỆP — The speakers answered many questions from young people about finance - Photo: THANH HIEP

Need to equip with solid financial knowledge

Các bạn trẻ nếu muốn vay tiền, chỉ nên vay nhằm tạo ra tài sản như tiền và lợi nhuận, bù lại được khoản vay mình đã bỏ ra, tránh vay để mua tiêu sản - Ảnh: THANH HIỆP — If young people want to borrow money, they should only borrow to create assets such as money and profit, to compensate for the loan they have spent, avoid borrowing to buy consumer goods - Photo: THANH HIEP

The speakers also reviewed some popular forms of investment today such as banking, gold, real estate, stocks, and virtual currency. Speaker Lam Binh suggested that young people can take a portion of their money to buy gold rings as a form of investment.

"In addition, in recent years, investing in start-ups has also been a very popular trend. Some forms of investment such as real estate are often for people who have worked for many years and have a large balance. Meanwhile, investing in start-ups is a trend but the risk is quite high because this field requires good ideas and experience in managing people, technology, finance...", he explained.

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Mr. Binh added that virtual currency is often associated with a negative image because many people do not fully understand this form of investment. Once they do not fully understand, many young people develop a fear mentality, in addition to seeing a lot of information related to fraud, they will become more confused, feeling that virtual currency is dangerous.

"In Vietnam, there is no legal framework for virtual currency, so there are still many risks. Please research the information carefully to avoid fear. Before investing, you need to equip yourself with knowledge and financial understanding to control the investment situation. You should research and learn to go faster and shorten the investment path," Mr. Binh added.

Meanwhile, Mr. Khoa emphasized that learning and financialeducation are very important. This knowledge helps each person avoid mistakes, and if there is failure, they can learn from experience and make better decisions later.

He also advised young people that if they want to borrow money, they should only borrow to create assets such as money and profit, to compensate for the loan they have spent, and avoid borrowing to buy consumer goods. At the same time, they need to have a roadmap and careful advice because this method is quite risky.

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