In our everyday life, we come across numerous situations where we need to evaluate and find the best course of action related to earning, spending, saving, or investment of our hard-earned money.
Most of the time, we depend on our friends, relatives, colleagues, and the media to make those decisions.
Left to ourselves, we get cold feet because of the plethora of confusing choices we are faced with—Shares, Derivatives, Mutual funds, Bonds, Insurance plans, Gold, Fixed deposits, Post Office Savings etc. With voluminous fine prints attached to them, it’s indeed a tedious task to weigh their pros and cons or analyse the risk-reward, analyzed the best use of our money to generate better returns or value.
This fear is not limited to the inexperienced alone. A lot professionally qualified and successful people find themselves equally challenged in the absence of adequate exposure and training in financial skills.
Financial literacy helps one to:
- Familiarise with various jargons used in financial world
- Acquire practical money management skills
- Judge various options available for savings, investment, borrowing etc.
- Recognise and seize best opportunities early and smartly
- Avoid pitfalls and grave mistakes leading to suboptimal use of money
- Make most of available resources and achieve important milestones in life easily