What Is The Importance Of Financial Literacy?

The importance of financial literacy and how to manage money is clear when you look at the facts. More than 70% of working people in India barely have enough money to cover their expenses until the next payday. 

This means they can only save money for unexpected events. Sadly, many end up borrowing money at high-interest rates when they face money problems, which makes their situation even worse. 

People who understand money matters are better at making wise financial decisions. This helps them avoid tough financial problems and be ready for unexpected expenses.

Why is financial literacy important?

Feeling Financially Strong

Knowing how money works helps people feel strong and in control of their lives. It allows them to make smart choices about money and taxes, which helps them save more.

Being aware of Scams

People who know about money are less likely to be tricked by scams or get into financial trouble. They're also better at keeping their money safe, even when times are tough, such as during a crisis.

Living Standard

Understanding money reduces stress and helps people plan for the things they want in life, like buying a house, sending kids to college, or retiring comfortably.

Avoiding Debt

If you understand money, you're less likely to get into debt trouble. You know how to borrow responsibly and avoid owing too much.

Making Wealth 

Knowing about money helps you make smart choices with your money, like investing for the future or saving for big things like a house or college.

Planning Retirement

As people live longer, it's important to plan for retirement. Knowing about money helps you save enough for a comfy retirement and handle any surprises along the way.