Financial Literacy

      Financial Literacy

Financial literacy nothing but knowing how to save what you earn and do more with what you save. It is all about understanding how you can build your own personal wealth.

      Every individual's ultimate goal is to earn and make a living. And hence, Financial literacy is important that every individual must understand money management. Apart from earning and saving, it also important to be aware of and utilize various financial resources like investment plans, insurance plans, real estate, budgeting, retirement plans and tax plans, bank deposit plans and many more. Our responsibility does not end just by earning and spending, managing our earnings and savings also add on to it.

 

  Its not really necessary that we should get financial education only through qualified persons at financial solution centers, a simple google search would also fetch you a lot of information. It is essential to understand various investment plans apart from investing on gold and land alone. I would suggest budgeting to every family, as it plays a very important role in giving you the complete and detailed information about how you can plan up your further expeditions. It also gives a clear outline of one's financial status.

  I would recommend all of you to make banking an integral part of your lives. Technology has grown to an extent where e - banking has come into existence. We can access bank and its transactions by using our smart phones by simply sitting at home or from wherever you are without having to go to a bank.

     I want to share with all the youngsters and people who have just started earning, a success formula , for efficient money management.

                       Expenditure = Earnings - Savings

       In this way, our savings will not be cut short due to huge expenditures, as our expenditure is confined because the left over amount after saving is what is used for spending. This will ensure that a sense of  responsibility is created in the youngsters.

        Life is unpredictable, therefore, there are chances of sudden unexpected expenditures creeping in. So, in order to face them, we need financial support. This support can be obtained through our savings or loans of different kinds. Many times, the amount of money we have saved would be sufficient to fulfil these expenditures.

        I have personally noticed that sometimes, our relatives and other people whom we know, generally part from us when we are financially weak and rejoin us when we become strong financially. Thus, for anything and everything in life, effective money management is very very important.

   

During our childhood, it is pretty common that we usually prefered saving our pocket money. Saving was considered really very important at that time itself. We used to save and store money in our puppy houses and piggy banks. I used to ask my mom to stitch colorful purses for me to keep my saved money. I used different purse for coins and a different one for notes. But as we grow old, we slowly deviate from the habbit of saving.

 

But again, when we start earning, we become a little more serious about saving but we may not save very effectively. Especially youngsters spend all their money and finally realize that they are left with nothing to save. But if this continues, leading a secured life will remain a dream and hence, financial literacy is equally important to earning money.