In a rapidly changing world, financial literacy is one of the most important skills that can determine the future of a country. At the macro level, the government has analysts to monitor and predict the country’s future economy while studying changes in regional relations. However, there is a growing need to include financial literacy at the micro-industry level.
COVID-19 has further increased the need for financial education to support industry growth. The outbreak has left millions out of work in just months, with plummeting costs. Although the market is slowly recovering and retail investment has increased, the threat of financial uncertainty could have a lasting impact.
What is financial literacy?
Financial literacy refers to the ability to manage a wide range of financial literacy, including personal financial management, spending, and investing. Financial literacy forms the basis of personal and financial relationships. Most experts say that financial education is a way to access life and it is recommended to start as early as possible. Recently, financial investment and services have become the model for people in all industries. Financially savvy people are less likely to be involved in financial fraud.
Why financial literacy?
Money poses the most prominent position in having a particular standard lifestyle. Very few can survive without having money in hand. According to some research and data revealed, only 24% of the Indian youth is capable of managing their finances.
Rising digital literacy and the government’s approach towards the digital economy turned everyone’s interest towards financial literacy. There have been record-breaking digital transactions in India. The reason was UPI which is one of its kind in the world.
It is not just about the risk of getting your money stolen. Proper management of cash flow could lead to less wastage of money that could help you save a lot and utilize it as per your need in the future.
There’s always room for drawbacks when something good is in place. The ease-of-making payments through mobile phones made it easier for money-laundering groups and hackers to target financially less literate people. You might have received at least one call or an SMS in your life to date where they offer you a handsome amount of money; you just need to follow the link in the SMS or give your bank details to receive the prize amount.
These are too easy tricks as very few people understand that such fraudsters have a complete setup for hacking your device and stealing your bank balance within a fraction of seconds. More such tricks are not known to the common public, due to which they become victims of such frauds or scams.
Ambitious people strive for growth, and financial stability helps you achieve your materialistic goals. No one can survive and grow without having an ample amount of bank balance and property. It is linked to your family’s survival and growth.
Small organizations mostly fail to sustain in the competition for a long time. The reason is a lack of financial knowledge and the ability to maintain the cash flow in the business.
Contribution to economy
Very few can link their financial growth to a nation’s economic development. Saving a lot on expenses and increasing your savings amount does not help you for long. Utilizing the same for purchasing assets and smart investments will help you grow your money.
Small organizations play a crucial role in developing the economy. Republic states like India, which is the world’s fastest emerging economy, need organizations that are capable of making a worth billion in value from a small budget. We have such Unicorn startups that have showcased the power of innovative technology and a profitable unique business model.
Being financially aware makes you ready for uncertain events that could possibly damage your family expenses budget. Having stable financial planning keeps you ready for your future targets and makes it easy to achieve.
– Parag Ahire