Why Is Financial Literacy Important?

Versha Jain

What Is Financial Literacy?

Financial literacy is understanding financial products and concepts, like budgeting, saving, investing, simple and compound interest, insurance, inflation, etc., and making informed decisions.

Budgeting and managing funds

Behavioural Aspects

Financial behaviours like attitude, discipline, and awareness of money management are critical parts of financial literacy.

Financial Discipline

RBI's Awareness Campaign

The Reserve Bank of India organises Financial Literacy Week and other Awareness campaigns to highlight the urgent need for financial literacy.

Spreading awareness

Financial Literacy Week

Financial Literacy Week is organised annually around mid-February to help people understand financial concepts and their importance.

Teaching the Financial Concept

Financial Knowledge

Financial knowledge enhances decision-making abilities, independence, and financial stability. It helps handle challenges and use funds effectively, ensuring a stable future.

Education Loan

Professional Help

Seek help from financial advisors, certified financial planners, and registered investment advisors to gain financial knowledge.

Consulting a Professional

Online Resources

Gain insights into financial products and concepts like debit and credit cards, bank accounts, insurance, and interest rates, from the internet, newspapers and magazines.

Compiled By Himani Verma

Asking queries online and researching

Read More

Read More