How COVID-19 Pandemic Emphasizes the Importance of Financial Knowledge

The pandemic-induced economic and public health crisis have exposed many vulnerabilities and challenges. Majorly, it has been several financial difficulties. One of the biggest reasons for this is that most people lack financial literacy, which intensifies the struggle to financially plan, such as budgeting cash flows, paying EMIs on loans, managing savings, investments and insurance policies, etc.

The financial strain has affected many households globally and locally, particularly the families who have lost their sole bread earner, which raises questions on earning an income and managing expenses. Having said that, this is a time for families to come together and manage their finances and lifestyle smartly to tide over the tough times.

Amid the coronavirus pandemic, my neighbour Shruti was going through a tough phase managing her family's finances all on her own. Unfortunately, she had lost her husband due to COVID-19 and she was now responsible to take care of her family of in-laws and two children.

Though she is a financially independent, career-oriented woman, she had delegated all the financial decisions related to the household savings, paying debt, investments and insurance policies, etc. to her husband and did not actively participate much. This created a huge setback for her when her husband passed away, as she was left with having only a pint-sized idea of the family's finances and managing it.

However, Shruti's uncle, who works at a bank, initially assisted her in keeping track of all her finances, including loan EMIs, investments, and even helped her in claiming the life insurance policy her husband was investing in and paying monthly premiums.

When Shruti came to visit me later at my place, she said, "Previously, my husband was in charge of all of the household's financial concerns as well as all the documentation work that was required at any given moment. After his demise, my uncle helped me through it, but now I need to manage my family's finances myself and not rely on anyone else for it. I was hoping you could guide me comprehend the financial concepts better."

Empathising with her, I responded, "I am sorry for your loss Shruti and I can understand it must have been a devastating situation for you. Be strong for your family and I am here to help you out. To begin, I suggest that you invest in financial knowledge in order to safeguard your family's financial well-being"

"One more investment, Mitali?" Shruti retorted, "You know I am already grappling with these finances"

"Well, this investment will help you manage all your personal and family's finances effectively. You just need to equip yourself with the weapon of financial knowledge to know the nitty-gritty of financial planning and investment management and gain better control over your finances." I explained.

Shruti curiously responded "Really? But how am I going to gain financial knowledge in such a short period of time, especially with these lockdown restrictions?"

She was listening intently to what I was about to say next, I replied "Don't worry Shruti, you see the world is no longer the same, as we are still battling with the second wave of COVID-19 and your family needs you more than ever before. By enhancing your financial knowledge you will be able to carefully handle your hard-earned money and prevent making unworthy financial decisions that may affect your family's financial future."

"I do understand that we don't have everyone in our families who are financially savvy, but you could guide them by becoming your family's Financial Guardian. You must be wondering how all of this will work, well PersonalFN encourages you to enhance your financial literacy and it has a special initiative with a course called the Certified Family Guardian"

"This course provides you an exclusive opportunity to learn the finer nuances of financial planning and money management at the comfort of your home. It is organised into eight modules and 24 extensive videos that will enhance your financial knowledge and help you make informed financial decisions for your family's financial well-being."

"The Certified Family Guardian course offers host of other benefits and it will help you with all the relevant tools and learning modules needed for your better understanding. You can simply enrol to Certified Family Guardian course today itself and start with your journey to financial literacy."

As the saying goes: "Turn your wounds into wisdom" - Oprah Winfrey

She replied, "That's great! Now I can finally figure out a way to manage these family finances myself"

Shruti enrolled for the course and after a month, I got a video call from her saying, "Thank you for recommending this course, now I am able easily manage my family's finances perform budgeting exercise, reset financial goals, become well-versed with the insurance policies and investments and other financial planning. I even managed to switch my in-laws Fixed Deposit investments into a better interest-rate providing instrument and started my SIPs in ELSS for tax saving."

She added further, "This pandemic has made me realize the importance of financial knowledge in the true sense. I have suggested the Certified Family Guardian course to my office colleagues too, so they can enrol and attain financial literacy for a better financial future."

You see, if you have adequate financial knowledge it could help you in managing your finances better through such unforeseen events that lead to financial complications.

Financial Literacy teaches an individual to make informed financial decisions, enhance financial knowledge and skills, develop financial discipline, and build wealth in the long term. You could help your family members in making sound financial decisions.

Looking at the current scenario of uncertainties, it is essential for an individual to equip yourself with financial knowledge and safeguard your family's financial future.

So if you wish you enhance your financial knowledge and become your family's financial guardian in such challenging times, enrol for Certified Family Guardian course today!

Warm Regards,
Mitali Dhoke
Jr. Research Analyst

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