Spread awareness of financial literacy among youth

If you ever wondered why people financially struggle despite they diligently work in their entire life either in a job or  in business, why our community is divided into classes of ‘High, Middle and Low’ when we talk from the financial point of view.

From being our childhood we never think about our parent's money that how our parents earning money to fulfill our wishes, to give us life like what we want, they do not involve us in financial matters, Do you know why? Parents always think that their child must have a quality education with a life full of fun in their life, they make us shop for ourselves, for our friends, for our pets. And always ask you at every moment if you want anything more, to ensure that you get everything whatever you want to keep you happy.

The rising need for status, standard and recognition made you spend more and from more popular place to rise in sumptuous living, these all demand a lavish amount of money.

Have you ever think of why parent need loans when you grow up, in spite of being working so hard for their entire life?

So now, it's your turn to take action, it is your responsibility to consider and step forward in financial life because of money matters in everyone’s life.

Have you heard a term of financial literacy? Yes, financial literacy becomes a major issue in our country than any of the other developing countries.
Financial literacy An ability to understand and effectively apply financial skills, including personal financial management, budgeting, and investing.
What needs to understand to be financially literate?

• ·      Do you know how to create a monthly budget that includes all of your basic expenses, your bills, any debts and your sinking funds for future purchases?

• ·      Are you currently debt-free? And if you not. Are you taking active steps to scale back debts?

• ·      Do you have any idea about how much money you spend to cover living expenses over a period of three to six months?

• ·      Do you have an understanding of how compound interest allows invested money to grow over time?

• ·      Do you know the various kinds of insurance that are needed to protect your finances and investments?

• ·      Do you understand the difference between an investment and insurance?

Why it is important to be financially literate?
But I want to get you to know, you are in your growing age and adulthood is an age where you are eager to learn new things and as this finance subject is really important to study from the age of ten years, your schools do not include this subject in curriculum very early age but you have to start studying by yourself  from the basic level so that you can grasp complex  things easily when you reach in your adulthood, you will find yourself a financial literate.
The time comes when you need to bring change yourself to not spend your parents hard-earned money childishly. It’s time to require a wise decision, I'm not saying to not spend your pocket money for your enjoyment, what you would like is to review the methods that how people are using their savings and you ought to start saving some amount of your pocket money before spending, these habits will make you to work with numbers and you will realize what you have achieved in a very early stage. If you aim to get rich in your young age then only earning solely not make you rich, you ought to adapt rich habits by understanding the science of finance that's the way to manage the earnings well this is all about financial management.

 A skill which does not teach in your schools and colleges and it is very necessary to have a good command over this so you can aware of your evolving age to understand the power of money.

According to a global survey, about 76% of the youth population do not understand the foundation of financial concepts, financial illiteracy becomes a problem that’s why India has a huge population of a middle-class family which always struggles from their financial matters, this causes conflicts in the family, mental illness, health issues, relationship disturbances and it all stems from poor financial planning. Financial planning is a must for every individual to secure your future and avoid running out of cash. Financial literacy becomes one of the topmost priority for most of the nations, and it is even more critical for a nation like India where majority find financial literacy beyond their comprehension.

To be financially literate is to know the science of managing money, it means to learn how to pay your bills, how to borrow and save money responsibly planning for retirement.

This is your chance to take an initiative to self-educate and grow your financial knowledge from an early age, understand the basics of money management, and mature into a smart spender. You have to give a chunk of time for developing yourself financially, it is going to help you in improving saving and investment decisions. And you can apply a simple formula for this, by leveraging your resources - age, talent, money, and the ability to establish good habits you can build a long-lasting nest egg.

Now, this will grab your attention towards where your money comes from, and where it goes you can call it a science of finance.

Proficiency of financial principles and concepts such as compound interest, managing debt, profitable saving techniques, and the time value of money. There are some ways to achieve financial literacy includes learning the skills to create a budget, ability to track spending, learning the techniques to pay off debt, and effectively planning for retirement.

While reading all this you are brooding about should I include myself financially literate or illiterate, for this, I am going to assist you.

There are a few questions which will help you to figure out:

I hope, after asking these questions from yourself you are forced to place yourself financially. 

Shall we move on?

Uncertain economic conditions, rising personal disposable income, a wide variety of financial products, rising expenditures of standard living, increased use of advanced technology, higher demands and expectations also give rise to more money outflow. You need to understand that how can you numerate your work routines?

Today, in this uncertain economic conditions, nothing is safe and secure, neither a business nor a job that’s why we have to create a financially secure future, but most of the people don’t know about the majority of financial products and reasons can be lack of education, lack of estimating the return on investment, fear to take risks, increasing the use of advanced technology, lack of knowledge of financial concepts just because of these reasons many of you cannot utilize your savings in any wealth rising vehicle.

Many of you who is aiming to make a career in finance, in early-stage you get conversant in with those terminologies which individuals learn in their 18-19 age group, it will be really beneficial for you people to get aware of personal financial concepts and you can also start managing money at the early age of your life. Your parents will feel proud once they will see your money management habits.

As financial literacy may be a growing challenge in developing countries experience an increased access to financial services. Mobile phone technology, urbanization, growth of microfinance and therefore the prevalence of remittances all ensure that even poor, rural populations can easily access a bank account from a mobile phone and the internet.

The financial crisis in 2008 brought the necessity for increased financial literacy to the world’s attention. Globally, financial literacy levels range from 13 percent to 71 percent, with a loose correlation between higher economic development and higher literacy rates. In McGraw Hill financial report Financial literacy Around the World, the countries with the highest rates of financial literacy are Australia, Canada, Denmark, Finland, Israel, Sweden, Netherlands, and the United Kingdom, where at least 65% of adults are financially literate. Major emerging economies like the BRICS (Brazil, Russia, India, China and South Africa) experience only 28 percent literacy among adults on average.

The development and growth of the Indian economy and therefore the expansion of financial markets post-industrial policy as a result of liberalization, privatization and globalization has resulted in the tremendous growth of financial products as an investment alternative or a credit one. The increasing complexity and available choices of financial products, shift of providing social security from the government to individuals, the growing importance of planning for retirement have made it compulsory to provide financial literacy prevents people from making a judicious choice in regard to their financial decisions and consequently render them incompetent to select the most appropriate investment alternative to beat the prevalent inflation rate of the economy.

A higher level of financial literacy of market participants plays a complimentary role in helping a financial market achieve its primary function of mobilizing and allocating the savings more effectively and efficiently. Increasing financial literacy and capability promotes better financial decision making, enabling better planning and management of life events such as education, house purchase or retirement.

How parents handle and spend their money would have a direct bearing on you, as you would be by default are most likely to have expenditure patterns comparable to your family.

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