We all get educated in top ranked schools, colleges, universities, but are they really preaching financial literacy? Obviously No! We are getting Formal Education from the colleges, but we are not providing the important life skill- “Financial Literacy”
What is Financial Literacy?
Financial literacy is nothing but preparing a budget and plan for your future by saving/investing in different investment avenues. Our formal education system preaches technical skills, but they fail to preach- How to manage our salary(income)and plan for the future.
Financial literacy is a life skill which gives an overview of budgeting, reviewing our current financial condition and be prepared for the future.
Only 22-25% of Indians are aware of financial planning out of which 5-6% people are planning for their retirement from their first salary. In India retirement is a most negligible goal where 92-94% of Indian population neglect retirement thinking that it is too far away and they don’t need retirement planning as of now.
By adopting Financial literacy in the early age, one can prepare for their golden years(retirement)as in India there are no social security schemes for retirement. Developed countries like America provides 401(k); a social security retirement tool. But in India it is not practically applicable.
One must plan for his financial future and it is possible only through adopting financial literacy.By knowing various investment avenues and the tax structure, one can plan for his future growth which is not taught in our education system.
So it is important to develop life skill- Financial Literacy by implementing it in various stages of life. So try to learn financial literacy from Today! Read articles on financial planning and slowly you will be master in that field.