Why We Need to Work on Financial Literacy

Why We Need to Work on Financial Literacy

Why We Need to Work on Financial Literacy

Finance is an important part of our lives. Its a means that allows us to live. But, if we raise the topic of financial literacy many of us will look clueless.   

What is Financial Literacy? 

Financial literacy, according to literal definition, is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well being. 

Financial Literacy - Need 

Though financial literacy is so important, many in New Zealand don't understand it, and are lacking in knowledge to help themselves better their own financial situation. 

Social Factors  

Average family size is decreasing, and older people might, in future, not be able to count on the support of a joint family system taking into account the shrinking family size 

The rise of Consumerism: Media now has a greater influence over how and what we spend our money on. Society has a sly way of pressuring people into making unneccessary purchases even if it is out of their means. Credit cards and personal loans make this all possible. We suffer a lot from instant gratification. Hence we see increasing cases of revolving credit card debts, and payday loan debt traps. Savings and investments, on the other hand are considered hard and boring. 

Economic Factors  

The advent of Private Sector and Slower Government Hiring: Government jobs, which used to employ a very large portion of the population are no longer as easy to come by, and the resulting competition will continue to push people to join the private sector, as new industries come up. However, government jobs offer various perks, allowances and health care benefits (through CGHS, ESI etc.) and pension plans, which is not the case with private organizations. As a result, planning for retirement is now left to individuals who do not have adequate financial knowledge on how to prepare for the future. Another major benefit that was a given with government jobs was job security, but in the private sector, there is no such thing. So employees have to keep a sufficient amount of liquid funds at their disposal to be able to weather possible contingencies. 

Rise of Automation: Computerization and Automation technologies are making many jobs redundant, and people in private jobs need to be able to pivot and learn new skills to stay relevant and employable in the knowledge economy. 

Inflation : Any planning for the future need to take into account the effect of inflation on the purchasing capacity. While inflation is good in small doses – it can eat into savings if it is not controlled, which is something that the government and RBI work on, so it is out of our hands. All we can do is make conservative estimates and take appropriate measures while planning for future. 

Financial Illiteracy- Consequences 

Financial illiteracy is a burden to our nation. Financial illiteracy results in higher cost of financial security and lesser prosperity. As studies have shown, most people resort to investing more on physical assets like land, gold etc. and also in short-term investments. This conflicts with the greater need for long-term investments for households and various steps of life. 

How Power to Me can help you? 

Looking at this urgent need of financial literacy in, Power to me came up with the concept of e-learning module on various aspects of Financial literacy like-- 

All these 4 programmes are designed in a way that it collectively helps you to gain in-depth knowledge on financial literacy, personal empowerment, business, and investment. It empowers you with all the skill sets required for lifelong financial planning. To know more about Power to me and it's different modules, visit us now.  

 Why Power to Me

  • Power to me provides you with the best of information 
  • For life-changing programs at the most affordable price 
  • Get trained by industry experts with long-term proven track records of success 
  • Informative yet simplified sessions 
  • Masters of the financial world share their experiences and wisdom 
  • Self-assessments to evaluate your understanding and progress during the sessions 
  • Power to Me gives an opportunity to discover the secrets of financial leaders for executing strategies and taking action to be successful 
  • Industry leaders share their best practices which will help you in your personal empowerment 
  • We help you to understand financial freedom and how you can achieve it in the most effective manner 
  • It empowers you with the skill sets which improves your understanding of the financial world. 
  • It gives more clarity and a better sense of financial awareness and growth. 
  • It helps to manage your mental, physical, emotional and financial state. 
  • It removes all negativity and creates a positive atmosphere where you start believing in yourself. 
  • It helps in engaging and empowering yourself to move forward successfully. 
  • It enables you to get a successful positive transformation in your personality. 

You are just one click away from your financial planning, Get started right now