Importance of Financial Literacy

An Introduction to Financial Literacy

We go to schools, colleges, universities to complete our educated and

start earning our livelihood. We take up jobs, practise professions or

start our own businesses so that we can earn money to make our living.

But which of these institutions make us capable of managing our own

hard-earned money? Probably a very few of them. 

Our ability to effectively manage our money by drawing systematic

budgets, paying off our debts, making buying and selling decisions and

ultimately becoming financially self-sustainable is known as financial

literacy. 

Financial literacy is knowing the basic financial management principles

and applying them in our day-to-day life. 

Financial Literacy – What does it Involve? 

From simple practices like keeping a track of our expenses and

understanding the need to spend money if we like a product to striking a

balance between the value of time saved and money lost, paying our

taxes and filing of tax returns, finalizing the property deals, etc –

everything becomes a part of financial literacy.