The term "LITERACY" usually refers to the ability of reading, writing and the ability to understands the things. But financial literacy this term is used very rarely which means the ability to understand the finances, personal budgeting, savings, how to make your money work for you.
The financial system is a set of very complex and closely connected items. In our school, we learned how anyone can earn money by having high profile jobs, businesses etc but how to use your money, savings schemes investments, interest rates etc we are unaware of these things because of our basics are not strong.
Financial literacy means a person who is aware of financial terms mobilization of savings and investment, preparing their financial management, budget, regulating their expenses and income. Not only the finance manager, stockbrokers can be financially literate but you, every person can be called as financial literate.
One should know that human demands and desires are unlimited more you earn more Your willingness to spend increases. That's why you should follow the principles of rich dad in real life i.e Income - Savings = Expenditure instead of our math Income - Expenditure = Savings.
Maintaining budgets to analyse your expenses is very important in today's modern world eg: if you are a student and you get 80$ per month to spend its important for you to bifurcated your spending priority wise most important comes first. And keep sum as a sinking amount for future uncertainties. Tracking Your incomes is very important in today's dynamic and inflationary World.
While you may touch upon the concepts within a mathematics course, it’s important to understand different aspects, like compound interest. Why? Not only can it help you save even more, but it can make the difference between borrowing a small amount and paying back much more than you need to for years to come.
Prioritizing savings, budgeting, debt - credit cycles understanding complex banking system etc all these are quite necessary for every individual and having brief ideas of every term is known as financial literate people. Financial literacy for savings function is beneficial for you today, and for future also.
The % of financial literacy increases the country's GDP also increases as people will utilize their money more effectively, leading to more economic development, high standard of living creates more demands for prestigious goods which lead to more startups and business indirectly leading to employment.
Hence, financially literate, peoples play a crucial role in the country economic development.
The financial system is a set of very complex and closely connected items. In our school, we learned how anyone can earn money by having high profile jobs, businesses etc but how to use your money, savings schemes investments, interest rates etc we are unaware of these things because of our basics are not strong.
Financial literacy means a person who is aware of financial terms mobilization of savings and investment, preparing their financial management, budget, regulating their expenses and income. Not only the finance manager, stockbrokers can be financially literate but you, every person can be called as financial literate.
One should know that human demands and desires are unlimited more you earn more Your willingness to spend increases. That's why you should follow the principles of rich dad in real life i.e Income - Savings = Expenditure instead of our math Income - Expenditure = Savings.
Maintaining budgets to analyse your expenses is very important in today's modern world eg: if you are a student and you get 80$ per month to spend its important for you to bifurcated your spending priority wise most important comes first. And keep sum as a sinking amount for future uncertainties. Tracking Your incomes is very important in today's dynamic and inflationary World.
While you may touch upon the concepts within a mathematics course, it’s important to understand different aspects, like compound interest. Why? Not only can it help you save even more, but it can make the difference between borrowing a small amount and paying back much more than you need to for years to come.
Prioritizing savings, budgeting, debt - credit cycles understanding complex banking system etc all these are quite necessary for every individual and having brief ideas of every term is known as financial literate people. Financial literacy for savings function is beneficial for you today, and for future also.
The % of financial literacy increases the country's GDP also increases as people will utilize their money more effectively, leading to more economic development, high standard of living creates more demands for prestigious goods which lead to more startups and business indirectly leading to employment.
Hence, financially literate, peoples play a crucial role in the country economic development.
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