Financial literacy is commonly known as the ability to understand and effectively use of various

financial skills including first personal financial management, budgeting and investing. The need of
understand financial literacy is increased as financial markets are growing voraciously. The group of
individuals and their families are increasingly faced with making highly stagy and irreversible
economic decisions. For example while considering the corporate sector it has been observed that
the demographic choices (e.g. age, lifestyle. etc) at workplace changing rapidly due to the financial
insecurity after the retirement and increasing individual responsibility results into the employees
and workers changing their jobs many times before retirement. Why there is a need to understand
financial literacy ?  In earlier times the government are used to tell about saving and investing. In
the process of employer and government judgment regarding how much to save and where to invest
now has been replaced by individuals are initiating and making choices their own about investing. 
The new trend has been settling that is increasing in individual responsibility and greater financial
complexity extend into the area of life.  It determines how well people make and execute their
financial decisions including saving, borrowing and investing.  It effects on financial decision
making extend above and beyond the effects of education, sex, race income and other factors which
is previously associated with gaps in financial knowledge.  Lack of knowledge might preventing
people from investing or those people with no money may fail to learn about financial markets.  It
also gives the brief clarification about wealth accumulation or financial literacy drive saving or the
casual mechanism is the rivers from wealth to financial literacy.