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Instituto Tecnológico de Santo Domingo

Financial education, a fundamental learning to materialize projects

During a discussion held by INTEC, teacher Manuel Santana affirmed that studying finance allows managing personal resources, how and in what terms reduce risk and uncertainty and know how to interact with the business world

Financial education, a fundamental learning to materialize projects

SANTO DOMINGO. -In the Dominican Republic its citizens have a great desire to learn finance, in fact, the first survey of Economic and Financial Culture prepared by the Central Bank in 2014, revealed that 73% of those surveyed showed a desire to learn about money, he stated Manuel Santana Ramírez, coordinator of the Master in Finance of the Instituto Tecnológico de Santo Domingo (INTEC).

He highlighted that the survey indicates that only 30% of citizens have knowledge of simple interest, 48% of credit card interest rates and 48% know the value of money over time.

About what things Dominicans want to learn in the financial field, in the BC survey, which was divided between those with the lowest incomes, and those with high and medium incomes; In the first, 76% said they want to learn about how to save, 71% invest, make budgets (62%), how to obtain a loan (57%), how to use financial products for businesses (48%) and how to use financial products from correct way (51%).

 "There is a significant learning gap regarding finances in the Dominican Republic, and the State and companies must constantly continue their support and support," said the INTEC professor.

MANUEL SANTANA RAMIREZ

The expert stated that all professionals and non-professionals require a minimum knowledge of finance to complete their success in life and the materialization of most of their projects.

During the discussion "Impact of finances in the personal and professional sphere", Santana Ramírez said that, at an international level, a survey of the mba.com portal Prospective Students Survey 2019, for potential business students reflects that, of the masters to consider In the next 10 years, finance is in first place with 24% out of 30%, followed by master's in data analysis (19%) and masters in administration and management both occupy third place with 14%.

He concluded that the main world organizations such as the World Bank and the Inter-American Development Bank recognize the importance and necessity of learning finance for the financial balance and control of the lives of people and companies.

On why studying finance, the expert said that this allows knowing how to manage personal resources, how and in what terms I reduce risk and uncertainty, know the management of working capital, know how to interact with the business world and better plan the investment and expenses.

He pointed out that several researchers have come to the conclusion that there are four fundamental decisions in families: first, consumption and saving; second, how to invest the money saved; third, on what terms to try to reduce the financial uncertainties they face or when to increase risks, and fourth, how they should use other people's money to carry out consumption and investment plans.

The INTEC teacher considered that COVID-19 and personal financial management have forced people to make personal and family budgets, carry out a kind of war economy and bet on financial intelligence, to reduce the financial anxiety that today today it is sheltering a large number of people. 

Regarding corporate finance, he said that companies must make big decisions, balancing levels of risk and investment with three basic policies on cash and operations: a relaxed policy (high level of cash), restricted policy (minimum level of cash). cash) and moderate policy (adequate volume of cash), as well as maintaining an optimal capital structure that, in addition to maximizing the value of the company, generates adequate dividends to reward its shareholders.

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