5 Ways to Celebrate the Financial Literacy Month

Financial Literacy Month is an excellent time to assess and improve your financial situation and skills. If you consider yourself illiterate in terms of finances then you are not alone! It does not matter if you have just started earning or have been earning for a long time, every day is a chance to reflect upon your spendings and improve your finances. The Financial Literacy Month is not only a celebration but is a challenge. This is your opportunity to review your finances, instil good financial habits and gradually improve them.

India is emerging as one of the world's fastest-growing economies, with nearly one-fifth of the world's population. According to a study done by the Global Financial Literacy Excellence Center a few years ago, only 24% of the adult population in India was financially literate. According to a recent SEBI report, only 27% of the country's population is financially literate. Although there has been a rise in financial literacy across the country, India's financial literacy rate is the lowest among major emerging economies. This is due to a lack of formal financial management training, and a lack of awareness.

For decades, India's education system was lacking to provide students with the basic financial skills and knowledge required to navigate through this increasingly challenging financial world. Owing to the magnitude of changes in the financial landscape over the past few years, it's critical that we incorporate financial literacy into early high school curricular and equip students with the necessary financial knowledge to manage their finances in the future.

The COVID-19 pandemic, on the other hand, has highlighted the importance of financial education in everyone's life. Many lost their jobs in a matter of months, leaving them with ever-increasing obligations to pay and a lack of financial awareness that caught them off guard with a variety of financial difficulties. The economy is slowly getting back on track, and investments are increasing in the retail sector, but the looming threat of lack of financial literacy could have long-lasting consequences.

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The first step toward securing your financial future is arming yourself with the sword of financial knowledge, which entails learning the fundamentals of personal finance, such as budgeting, debt management, credit scores, and, of course, savings and investments. Financial literacy builds the foundation of an individual's relationship with money and how you could strategically build your wealth over the years by effective financial planning. Experts often believe that education in terms of finances is a lifelong process, and it is better to start as early as possible.

In recent times, financial investments and services have become standard amongst individuals with all kinds of economic statuses. Financially literate people are less vulnerable to falling prey to financial fraud.

Now you must be wondering how you may attain financial literacy?

So Here's 5 ways to celebrate this Financial Literacy Month and equip yourself with financial knowledge to secure your financial future:

1. Start by Reading Financial Information

You can start reading about finance in newspapers and magazines, and if you read financial news outlets regularly, you will receive a lot of information. Reading about financial subjects will help you enhance your financial knowledge, understand financial concepts, and keep up with the latest financial news.

The internet plays a significant role as a source of enormous information and learning; a simple web search should provide you with ample information on any financial topic. This will enhance your reading skills and make you financially aware.

Financial literacy may seem overwhelming, but fortunately finance experts are busy writing books on every nitty-gritty little financial topic you can possibly imagine. You may consider reading finance books, which will guide you from understanding basic financial concepts to creating a financial plan for yourself. Reading books related to finance offers you to take advantage of decades of financial wisdom and assists you with ideas to save and invest your money wisely.

However, as there is such a huge amount of financial information available, there is a possibility that you may be misled by false information. While reading, make sure to filter relevant and valuable financial information.

2. Financial Podcasts

If books aren't your favourite way of learning something new, you can turn to one of many financial podcasts. Typically, podcasts are audio or video recordings of a lecture, a performance, or another event. It features finance experts covering a variety of topics, which you may listen to at your leisure.

Podcasts are a great way to multitask as well. You can listen while doing chores or driving, saving you time. Such podcasts are available on a variety of digital networks, and they will help you improve your financial knowledge. Some Best Personal Finance Podcasts are "Afford Anything" by Paula Pant and "Millennial Investing" by Robert Leonard.

3. Use Financial Management Tools

You don't have to invent the wheel when it comes to financial literacy and financial management. The expansion of technology in the finance field has resulted in the creation of a variety of financial apps and tools, which is another fun method to improve your financial knowledge.

Money management applications, retirement calculators, and budgeting apps are just a few of the financial management tools that may help you get organised fast and efficiently while also teaching you a lot. Artificial intelligence technologies, such as robo-advisors, are embedded into such tools and applications to present you with relevant information and assist you in managing your finances.

Furthermore, these online tools can assist you in calculating your EMI, taxes that must be paid, and documentation that must be completed for any investment objective. Notably, there are only a handful apps that go even further. Using such financial applications and tools will undoubtedly improve your financial knowledge and assist you in keeping up with financial improvements.

Check the security of financial management tools and apps, as you may be entering sensitive financial information and don't want to become a victim of financial fraud.

4. Enrol for a Financial Literacy Course

It is critical to be financially literate in today's environment, which is marked by economic uncertainty and financial challenges. To strengthen your financial understanding and instil money management skills, a financial e-course could be an excellent solution.

A variety of in-person and online financial courses are available to help you learn about money management and investment. Financial literacy courses can be great because they provide top-notch information, and many times they are interactive.

Strengthening financial education in India has been an important agenda of the government and the various regulatory bodies such as: RBI, SEBI, IRDAI, PFRDA.

The Reserve Bank of India (RBI) launched the National Strategy of Financial Education (NSFE) 2020-2025. The policy aims to teach financial literacy concepts among ordinary people, encouraging them to save actively and boost their participation in the financial markets. National Stock Exchange is offering financial education programmes in around 4,000 schools across six states, namely, Nagaland, Gujarat, Himachal Pradesh, Goa, Tamil Nadu, and Punjab. The Central Bank recommends including financial education in the curriculum at schools and colleges. Inculcating the concept at an early stage helps people put it to use later in an individual's life.

Many institutions are providing courses that are customised for Indian consumers; the courses are well-researched and objective. Virtual courses have also been highly effective in the penetration of financial literacy in smaller cities.

Financial e-courses allow you to study financial management from the convenience of your own home, giving you the freedom to balance your work and devote time to improving your financial knowledge. You need to select an effective financial course that helps you understand the nuances of financial planning and guides you in the following aspects:

• Defining S.M.A.R.T financial goals

• Budgeting strategies

• Investment planning

• Insurance planning

• Ways to debt reduction

• Importance of contingency fund

• Retirement planning, etc.

I would suggest you enrol to PersonalFN's exclusive new certificate e-course, the "Certified Family Guardian". This e-course is truly empowering separated into eight modules with 24 extensive videos, that enhance your financial literacy and assist you to become your own financial planner with the help of its premium tools. You can equip yourself with financial knowledge under this course and be your family's financial guardian that makes informed financial decisions for a secure financial future.

5. Connect with Financial Experts via Social Media

In India, social media has had a significant impact on the spread of financial literacy. Social media attracts the millennials it has several accounts of financial experts that keep imparting financial knowledge and concepts with various target audiences, ranging from novice to expert.

Amidst the pandemic, social media was one of the most powerful drivers of increased investment. During this time, numerous stock market instruction academies, YouTube channels, and websites were established. Increased internet access and attractiveness of various channels has resulted in a growth in investment popularity across India. Several individuals from different age groups began investing in equity markets and mutual funds.

There are various financial experts available on social media platforms who may have answers for your financial queries, whether it is about the basic day-to-day money situations or more complex financial planning scenarios. The tech savvy generation prefers things to be easily accessible and truly bite-sized, social media helps assist you improve your financial knowledge in a convenient yet interesting way.

However, bear in mind you to avoid following herd mentality and make unworthy investment decisions. Ensure that you grasp the valuable financial information and invest in worthwhile investment avenues that suit your risk profile and investment horizon. Do not be swayed by trendy stocks or unsolicited advice from friends and family.

To conclude...

Financial literacy is the doorway to effective financial planning for a bright financial future. In order to navigate through today's tough financial landscape, it's crucial that financial education is introduced right from the grassroots level as it's undoubtedly an essential life skill. It is essential for as a parent to impart financial literacy amongst their children to be able to cope with any financial challenges in future.

Financial Literacy will assist you in accumulating wealth, attaining goals, safeguarding yourself in the event of an emergency, securing your family, and leading towards a bright financial future. Financial literacy will provide you with the necessary financial information to become your own financial planner. As you may comprehend financial concepts better, you will be able to ask appropriate questions to your financial advisor rather than relying solely on their judgments.

Financial literacy enables you to take on the role of financial guardian for your family and support them in making sound financial decisions. India's labour force, when combined with a solid financial education, has the potential to propel the country's emerging economy to new heights. A financially smart India would have significant global influence.

Thus, celebrate this Financial Literacy Month by enhancing your financial knowledge to avoid making any costly financial mistakes. The more financially knowledgeable you are, the more equipped you will be to make wise financial decisions and even build a substantial corpus for your future.

PS: We at PersonalFN understand that not everyone holds deep financial knowledge. Here we encourage you to gain and enhance your financial knowledge and become a 'Financial Guardian' to your family. You will understand the financial planning elements to become your own financial planner.

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So, if you wish to enhance your financial well-being and secure your child's financial future, you must enrol for the "Certified Family Guardian" programme today!

Warm Regards,
Mitali Dhoke
Jr. Research Analyst