What If You Had An App For Creating Financial Literacy?
What does financial literacy mean?
The ability to understand and use different financial skills, including personal financial management, budgeting, and saving, essentially means financial literacy. The absence of these skills is called financial illiteracy.
- Financial literacy refers to a set of core financial skills and principles.
- Financially educated individuals are usually less vulnerable to financial fraud.
- A solid base of financial literacy will help encourage different life goals, such as education or retirement saving, debt responsibility, and business management.
Financial Literacy Awareness
Financial products and services have become more and more prevalent across society in recent decades. Whereas previous generations have mainly bought goods in cash, now numerous credit items, such as credit cards, mortgages, and student loans, are common.
Significance has also developed in other products, including health insurance and self-directed investment accounts. This made it even more important for people to understand how to use them responsibly.
From Munshi to Financial Houses – Everything changed but people still fall into a debt trap.
While there are several skills under the umbrella of financial literacy, common examples include household budgeting, learning how to handle and repay debts, and assessing the barriers between various credit and investment items.
Such skills also include working knowledge of key financial principles such as compound interest and the value of time. Given the importance of finance in modern society, the lack of financial literacy can be highly detrimental to a person’s long-term financial performance.
Unfortunately, research has reported that financial analphabetism is very widespread, estimating that some 66 percent of Americans lack financial literacy. Financial Industry Regulatory Authority (FINRA).
There can be a variety of pitfalls due to a lack of financial literacy. Financially illiterate individuals may be more likely, either through misguided spending decisions or through lack of long-term planning, to collect unsustainable debt burdens. In exchange, this may lead to bad loans, bankruptcy, home foreclosure, or other detrimental effects.
Fortunately, there are now more opportunities available than ever for those who want to learn about the world of finance. One example is the Financial Literacy and Education Commission, the government-sponsored/ Private commission offering a variety of free learning opportunities like the BIMA PAATHSHALA.
What is BIMA PAATHSHALA?
Bima Paathshala has been developed and operationalized to allow rural people to be aware of the cost of savings and security, a critical requirement in life cycle management, as a trademark of Shiksha Suraksha Foundation (SSF).
Digital connection to teach rural India’s soul, enabling insurance and saving knowledge to the rural soul. They dream of making a positive contribution to “Atmanirbhar Bharat.” “Shikshit Gaon, Shikshit Bharat will continue to be channeled by Bima Paathshala. “Gaon Surakshit, Bharat Surakshit.” Samruddh Bharat, Samruddh Gaon.