What is Financial Literacy?

As the importance of money is incrreasing in our day to day life it is also important for us to know how to correctly use it and gain knowledge about it. The problem- people are most likely to ignore it thinking that this is not an important block of the life but infact it is one of the building block of your financial life and an oppurtunity to know more about money, banks and credit stuff.

What is actally Financial literacy?

- Even asking questions means that you must have a little bit information about it. If you even have the basic knowledge about how to control your finances and how to do saving, where to invest those to gain the profit means that you already know about financial literacy. Today's increasing wants gave the people oppurtunity to know about it and apply it in our day to day life giving ourself a chance to understand the word. Interesting thing that the upcoming generation is interested in the working of money and how to use it. The research showed that kids are eager to learn about the money, credit and stuff to upgrade their financial conditions.

Are their any components involved in it?

- So the answer to your question is yes, their are actually six components which you have to keep in mind to balance your Finacial comdition. 1-Earning 2-Saving 3-Investing 4-Spending 5-Borrowing 6-Protecting The problem arises when sometimes people tend to ignore some factors to focus on mainly the factors which they think are right which palys a vital in the downfall of your financial conditions. Like Saving but not investing which is the result of the lack of the understanding the market. It's major example we can see in India where only 2% - 3% of the total public is investing in the market which results in the saving not increasing at all and decreasing it's value in market. It affects the people which they do not understand. This is the result of Financial illteracy. If people had the knowledge about the finance then they would definetely have considered saving and then investing.

Borrowing

is also important that is why using credit id also really important. It creates a interesting history for you so you could easliy loan money if you want to. You can use credit even for small thing like shopping etc. and then returning the money on time which works in your favour.

How can you gain Financial literacy?

The first thing that comes to my mind is social media as it provides the knowledge for noobs like us to advance players. It is the perfect platform if you are just starting your jounrney. But keep your eyes open and try to find the most trusted sorce among the society. -You can also subscribe to free financial newsletters to learn about it. -Reading books is also a big help and the easiest way to start. So I hope that this information was useful and that you won't make a mistake that will affect you bank account, now will you? Follow us on instagram- thetommorrowpapers