Why financial literacy is the new black?
Updated: Sep 3, 2018
We will discuss financial literacy for you and your family. It is highly essential for your spouse; even if she/he is a homemaker and your children to be aware about basic money matters.
How much you should know, and do you already know enough?
You could take a Financial Literacy quiz designed by NCFE (National Centre for Financial Education). This quiz can be taken by individuals 13 years and older to find out where you stand.
How will being financially literate help me?
You can make sound decisions about your investments. There are many aspects of your life that are directly or indirectly involved with money. Budgeting, insurance, paying your taxes, saving for your goals, which loans are best for me, managing credit cards, etc. You may consult a financial planner for all of these to be taken care of however knowing if you have engaged the right financial planner is a decision only you have to make. Once you get the advice, you are the only person who has the power to implement it or not. So how will you know how to act.
Many of you having children, you must have the right knowledge to be able to inculcate financial discipline in them from a very early age. With not many schools providing financial education, your child is solely relying on you.
Not falling for products, with a high commission or products that are not suitable for you according to your goal or risk appetite, is very crucial. Not all products with high commission are bad. You should be aware of it is the key. For example, you can buy mutual funds cheaper by opting to invest directly.
Your spouse being financially aware will be able to help you make better decisions for your family. You would have someone to count on in your absence. We all think of business continuity, however in our families we hardly like to think of the worse scenarios. What would happen if I am not there? You may have bought an Insurance for that matter and say that you have taken care of that aspect. Did you think of the fact that once the insurance company pays the large sum to your spouse how is she going to spend it efficiently to be able to sustain the family expenses. Where is she going to invest?
How do I know more about my money?
There are various financial literacy initiatives being undertaken by the government. Many of them directed towards women and children as well. Financial education in schools are being initiated to bridge this gap at the grassroot level. You can find out if your child’s school is a Money Smart School. These are based on a curriculum to inculcate financial education. Schools can send their teachers for Financial Education Training Program (FETP) conducted by NCFE. You can find out more on their website.
There are many reading material and videos that can help you with this. Please check the download section.
You can try to check the finance section on the newspaper that you may have ignored so far.
You can attend financial awareness workshops held by financial planners that are mostly free.
TV channels like ET Now give a wide variety of information in simple terms for investors.
Let me know if you are interested in a free money talk to get your finances organized. You may leave a message. Happy to help!