The world is all about managing money and “Finance” is the study related to it. With the growing population around the globe, there are numerous financial options coming up in the market. Be it interest rates, discounted offers, mutual funds investments, equity investments, real estate properties, or any other expense related to finance or money, it has become increasingly important for people to be as much aware about these as possible.
Also it has been noted that financial illiteracy is widespread and especially the population ranging from 18- 25 years have almost no idea about such things. Therefore this article focuses on what are the essential things to know to be financially educated and be aware enough to strike any kind of deal related to the investments, real estate, saving offers from banks etc.
There are a few things one has to fix in mind to be called financially aware and literate. Hereby a few of them are listed below:-
1. Financial Management
This is of real importance to manage the money that you are earning. There are a lot of responsibilities which are dependent on money like livelihood, education of children, household expenses, buying a home or car, investing in equity, mutual funds or gold and also saving. Thus there has to be a planning so that things can fall in line with that.
2. Controlled Investment
Many times people get carried away by the alluring offers extended by the banks and financial organizations for the customers. But seldom do we realize that there are expenses that are more important than just investment. It is understood that all of us want to secure our future, but not at the cost of our present. So the investments made should either be in synchronization to your monthly income, or should be as recommended by your financial advisor.
3. Risk of Fraud
Frauds are evident these days and therefore the risk of falling for one is quite high. If a person is not aware of right savings options or about other investment options, then the fact of not being financially literate can hamper the deal. There have been such cases and they have not offered anything more than mere disappointment. So to be on the safer shore, literacy if important if at all one wants to save or invest.
Apart from these 3 major points, there are other benefits of being Financially Educated. It would ensure intelligent planning that would well yield substantial savings for the family. It would also nullify the risk of getting cheated or falling for any fraudster. With increasing important of this particular education, the government and private educational institutions have a vital role to play. It should be made compulsory to high school students, so that they become aware of such topics and issues right from their childhood.
It is never too late to gain any kind of knowledge, and this is a one which really requires attention. So get a financial advisor today and consult him to know as much as you can.
About Author: Meenakshi Aggarwais the author of this article. For more information about Noble Funding Australia and Noble Funding please visit her website at noblefunding.com.au