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WHAT IS FINANCIAL LITERACY AND WHY IT’S IMPORTANT

Financial Literacy is the education and understanding of various financial areas like personal finance management, money expenditure and investment. Financial Literacy focuses on the ability to manage personal finances in an efficient manner, and it includes the knowledge of making appropriate decisions about personal finance such as insurance, investment, real estate, education expenditure, budgeting, retirement and tax planning.

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WHAT IS FINANCIAL LITERACY AND WHY IT’S IMPORTANT

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  1. WHAT IS FINANCIAL LITERACY & WHY IT’S IMPORTANT Check out the details of Financial Literacy, its importance and scientific overview on it.

  2. Financial Literacy- Definition Financial Literacy is the education and understanding of various financial areas like personal finance management, money expenditure and investment. It focuses on the ability to manage personal finances in an efficient manner. It includes the knowledge of making appropriate decisions about personal finance.

  3. Financial Literacy- Need India is ageing much faster than previously thought and may have nearly 20 percent population of its population in the age bracket of 60 yrs and above by 2050 Financial Illiteracy is directly associated with a shortage of money in retirement, this makes financial education a heavy burden on the nation, as the Government’s expenses on financial security increases

  4. Top 5 points- Why Financial Literacy is Important The average lifespan has increased and there is a extinction of guaranteed pension plans, so people are concerned about outliving their resources The expenses related to health care have doubled resulting in the consumption of one-third of a retiree’s resources Too many choices in investment schemes led to confusion and ultimately investment paralysis

  5. Looking at the life expectancy, current and future generation will spend an additional 15 years on average caring for family members, so either a child or an ageing parent or both will face financial challenges College and School tuition fees continue to be extremely high

  6. Scientific Overview - Financial Literacy A Study conducted by Van Rooij, Lusardi, and Alessie, 2011 clearly indicates that individuals with greater numeracy (the ability to understand and work with numbers) and financial literacy are more likely to participate in financial markets and to invest in stocks Another study stated that the financially literate individuals can choose mutual funds with lower fees (2)

  7. Lusardi and Mitchell (2007) have shown that elderly who display high levels of literacy were more likely to plan for retirement and, as a result, accumulate much more wealth Financial Literacy had not only affected the asset side, but it also influences the liability of household balance sheets. A study done by Campbell (2006) has shown that individuals with lower incomes and lower education level are less likely to refinance their mortgages during a period of falling interest rates.

  8. Financial Literacy Class (e-learning) Power to me In India is providing you an opportunity to upgrade your level of knowledge and information in terms of Financial Literacy We are here in India to make you understand today’s need for Financial Literacy for future’s benefit Through our online class, we lead you towards the journey of Financial Literacy

  9. Financial Literacy can’t be achieved without personal empowerment. Keeping the need for personal empowerment in mind, we have structured the entire course on it This course structure will empower you, enlighten you about the need for financial literacy and eventually it will provide you a deeper understanding of personal finances Under the Financial Literacy course, we will help you understand the basics and technicalities of financial literacy, financial planning, and Investments

  10. To know more about Power to me, you can Click Here Click Here for the Registration https://powertome.com/contact-us

  11. Thank You References-- 1. Van Rooij, M., Lusardi, A., and Alessie, R. 2011. “Financial Literacy and Stock Market Participation.” Journal of Financial Economics 101(2): 449−72. 2. Hastings, J., Mitchell, O. S., and Chyn, E. 2011. “Fees, Framing, and Financial Literacy in the Choice of Pension Manager.” In Mitchell, O. S., and Lusardi, A., eds., Financial Literacy: Implications for Retirement Security and the Financial Marketplace. Oxford, UK: Oxford University Press. 3. Lusardi, A., and Mitchell, O. S. 2007. “Baby Boomer Retirement Security: The Role of Planning, Financial Literacy and Housing Wealth.” Journal of Monetary Economics 54: 205−24. 4. Campbell, J. Y. 2006. “Household Finance.” The Journal of Finance 61: 1553−1604.

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