Financial Literacy: 5 key reasons why it matters more than ever

livemint.com:

Financial Literacy Week (FLW) to improve the public's understanding of financial concepts and products, enabling them to make well-informed decisions for their financial well-being. The chosen theme for the ‘Financial Literacy Week’, scheduled from February 26 to March 01, 2024, is “Initiate Wisely: Cultivate Financial Intelligence". The annual ‘Financial Literacy Week’ aims to promote the utilization of formal banking and financial services, discouraging reliance on informal or unreliable sources.

Given the prevalence of scams and the increasing incidence of online financial fraud, it is crucial to educate the public about consumer protection measures, ensuring they are informed and empowered to safeguard their money and rights. The digitalization of financial literacy aims to raise awareness and promote the secure utilization of digital financial services. Financial literacy provides individuals with numerous benefits, enabling them to efficiently manage their finances and accomplish their objectives.

Here are some essential ways in which financial literacy proves advantageous: Making educated choices: Grasping financial products and services such as loans, investments, and insurance enables individuals to evaluate options, analyse risks, and select the most suitable ones for their needs and circumstances. This knowledge helps prevent them from becoming victims of predatory practices or making expensive errors. Efficient financial planning: Having financial literacy empowers individuals to establish practical financial goals, develop budgets, monitor expenses, and manage savings effectively.