Why is Financial Literacy Important?

What is Financial Literacy?


3 TYPES OF SUCCESSFUL PEOPLE

1. Successful but BROKE
They are people with impressive accomplishments but little money, such as certified engineers, doctors, and teachers, and others. It's a result of their bad financial habits. When it comes to education, they can be considered successful, but when it comes to money, they are ignorant.

2. Successful but MEDIOCRE
These are the individuals who only make enough money to cover their everyday costs. unable to save at all.

3. Successful and WEALTHY
These are the people who can cover all of their living expenditures without depending on others since they are financially independent and have multiple sources of income. they have the capacity to make wiser financial decisions. effective debt and money management. more capable of achieving financial objectives. Additionally, because they are wealthy, they can invest in other financial objectives like business growth, retirement, a child's college fund, and other things.


5 Competencies of Financial Literacy

1. Earning - When it comes to personal finance, there are three ways to improve your income: 1. Spend less money. 2. acquire additional revenue. 3. use both

2. Saving - When it comes to money, we must have self-control so that we don't spend it on things that aren't essential.

3. budgeting - This is how you allocate money for your business, yourself, and other financial goals.

4. Borrowing - A loan is money borrowed that is repaid at a certain time with interest. People usually use credit for business, investing, emergencies, and buying things.

5. Protecting What is insurance? It is a risk management tool whose primary objective is to prepare you and your dependents for any disaster and sudden need. The priority areas of concern when it comes to insurance are life, health, business, finances, and possessions.

Finances
they have the capacity to make wiser financial decisions. effective debt and money management. more capable of achieving financial objectives.
finance, financial literacy