Financial education, the art of living: How it changes our relationship with money and protects us in the recession

The specialist points out that the effects of the technical recession are not uniform and depend on age, the type of job, the area where each of us lives. For example, for young people between 18-25 years of age, the current situation is felt at the level where fewer and less well-paid jobs no longer meet their need for independence.

Retirees are seeing their purchasing power gradually erode as prices rise faster than pensions. Employees on fixed incomes are becoming more cautious but cutting back on spending.

“Prices are going up, which means if we can't keep up, keep up our purchasing power, we're going to see the shopping basket go down and down.” says Ionescu. Added to this is a general tendency to restrict consumption, which creates a vicious circle: people spend less, companies sell less, hire harder or lay off people.

The current economic context amplifies the importance of changing mindsets

In times of recession, changes are quickly felt at the individual level, as the natural reaction is to adjust spending and focus on essential needs. This change is not only a financial strategy, but also a psychological one: it involves redefining priorities and the way we relate to consumption.

“We see with our own eyes how the pressure on disposable money is becoming greater. When we look at spending, we try to focus on needs and cut out wants.” says Corneliu Ionescu for Adevărul

The expert emphasizes the deep connection between money and emotions and points out that many financial decisions are not rational, but emotional. Behind a lot of impulsive spending is the need for comfort, validation, or escape from stress. The problem is that the satisfaction obtained is short-lived and the long-term effects are negative.

“An extremely useful question is: what are you actually buying when you buy? You enjoy it for a bit, but it affects you in the long run. It's a matter of mindset and how we live our lives with intention. Maybe you come to the conclusion that you'd rather spend some money on some therapy sessions, to clarify what your problem is, so that you don't have to spend money on nerves.” the expert recommends.

Therefore, financial education also involves a process of self-knowledge. It's not just about controlling money, it's about understanding your own reactions and motivations.

“Financial education is the art of living”, not a subject of study

Perhaps the most challenging thing that Corneliu Ionescu says is that financial education never ends. It's not a one-day course, it's not a budget app downloaded to your phone, and it's not a list of tips. It's a continuous process that evolves along with everyone's life.

“Money is nothing but the measure of the things we do. It is the financial life, a transcription in numbers of our real life.” explains Ionescu. And that's precisely why, he says, financial education can't be separated from deeper questions about who you are and what you want.

His model is based on four fundamental variables: what you're willing to do to earn money, how you spend it relative to your goals, what assets you build, and how you manage debt. Together, they form what he calls a personal financial statement, not an accounting document but a vivid picture of your choices.

“Financial literacy is about the art of living. Living well with limited resources, not getting lost in impulse spending, and planning beyond the current month are life skills, not personal accounting.”, summarizes Corneliu Ionescu.

The family budget: the first calculation that many have never done

Ionescu confesses that he frequently meets people who do not know how much they earn monthly and, even less, what they spend this money on.

“The first step, he says, is a very simple one: put down on paper how much money comes in and how much goes out. And preferably do this together with your life partner, because family money is a couple's conversation, not a taboo subject”

A common mistake is that people put current expenses first and save if there is anything left. Corneliu Ionescu advises us to reverse the equation: long-term objectives must appear first in the budget, before anything else. Otherwise, the economy always remains on the list of intentions.

“There are people who don't know how much money they earn and what they spend it on. The act of putting it down on paper is a planning activity. If we put the expenses up front, we will never save again”

Corneliu Ionescu claims that the best financial decisions do not come from fear or the pressure of the moment, but from a longer and clearer perspective.

Financial literacy is not about living on less. It means choosing more intentionally.

“The idea is how I manage to enjoy and live both when I have high income and when I have less income. Financial literacy is about our becoming, about who we are, essentially.” declares the financial education expert for The truth about money.

Thus, in times of economic uncertainty, true protection comes not only from savings or strategies, but from a mature and conscious mindset. Because, beyond the numbers, financial education remains the art of living.

You can learn about how you can practically apply all these tips in the full episode of the podcast The truth about moneymade by Antoaneta Banu.