ASAP Wayanad NEWS LETTER 4 | Page 7

Business Newsletter // October 2016

Business Newsletter // October 2016

PAGE 7 OF 12

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Financial literacy and Youth

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Financial literacy is the education and understanding of various financial areas. It also involves the proficiency of financial principles and concepts such as financial planning, compound interest, managing debt, profitable savings techniques and the time value of money(the greater benefit of receiving money now rather than later). The lack of financial literacy or financial illiteracy may lead to making poor financial choices that can have negative consequences on the financial well-being of an individual.

The main steps to achieving financial literacy include learning the skills to create a budget, the ability to track spending, learning the techniques to pay off debt and effectively planning for retirement. Financial literacy helps individuals become self-sufficient so that they can achieve financial stability.

SHANTHALA VB

SDE WAYANAD

Financial literacy shows how an individual makes financial decisions. This skill can help a person develop a financial road map to identify what he earns, what he spends and what he owes.

Financial illiteracy affects all ages and all socioeconomic levels. It is never too early, or too late, to begin developing financial literacy, taking control of your finances, and putting yourself on the path to financial security.

Taking control of life and money

Taking control of one’s life helps to instill confidence, determination, and commitment. These, in turn, can lead to accomplishment, personal success, and happiness. If we don’t take control of our own lives, we are more vulnerable to outside influences. The goals and objectives of others may lead us to where they want us to go – not necessarily where we want to go. Knowledge and skills can help people take more control. Financial education is an understanding of money, of how the financial system works, and what a person can do to preserve and grow his or her wealth. The world of money is one area where many people often feel they lack control.