Get Instant Loan up to ₹10 Lakh!
Portfolio management: Why Financial literacy is important for growth of your money
Financial literacy is crucial in today's fast-paced world, providing individuals with the skills to manage their money
Financial literacy is no longer just a luxury in today's fast-paced and complicated world; it is a requirement. It provides individuals with the information and skills required to properly comprehend and manage their own money. Being financially savvy is more crucial than ever in today's environment, when financial security is a fundamental component of success. Financial literacy is becoming increasingly crucial since the society we live in today forces us to make a lot of financial choices which have a direct influence on our financial well-being.
Financial literacy is an important concept to acquire because it gives people the skills and knowledge they need to make informed financial decisions. It educates people on how to manage their personal finances, budgeting, saving, investing, and planning for the future using a variety of financial concepts, tools, and strategies.
Before beginning their employment, individuals ought to be aware of the Important aspects of financial literacy, said Sooraj Singh Gurjar, founder and MD, of Get Together Finance (GTF).
“Budgeting is the first step, which includes keeping track of income and expenses and establishing financial objectives. Then taxes include understanding the essentials of tax collection, different tax documents, derivations, credits, and deadlines. Understanding, Debt management involves understanding the implications of borrowing money and the impact of interest rates maintaining a good credit score, and making timely payments to avoid unnecessary fees and penalties. Learning about various savings accounts, investment options, and strategies for long-term wealth growth all depend on saving and investing,” said Sooraj Singh Gurjar.
Financial literacy is essential for comprehending the world of investing. It empowers people to take charge of their financial well-being and confidently tackle economic issues, said Suren Goyal, Partner, RPS Group
“It teaches you about many investing possibilities, including stocks, bonds, mutual funds, and real estate. You may make educated decisions about developing your money, diversifying your portfolio, and planning for retirement with this knowledge,” said Goyal.
Sadly, it is a notion that isn't frequently reinforced in the majority of educational institutions or handed down among the majority of households, leaving many individuals with a lack of financial understanding, said Ashish Aggarwal, Managing Director, Acube Ventures Global.
Individuals with financial literacy are better able to manage their finances. It teaches the information and skills needed to comprehend topics such as saving, budgeting, making investments, & managing one's debts, added Ashish.
Thus, Financial literacy is an ongoing process, so stay informed about trends, and changes in regulations.
Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsMoneyPersonal FinancePortfolio management: Why Financial literacy is important for growth of your money
First Published:17 Jun 2023, 10:31 AM IST
- Top Gainers
- Top Losers
- 52 Week High