Financial literacy is the confluence of credit and debt
management, financial management and the knowledge necessary to make
financially responsible decisions. This includes knowing how a checking account
works, how to avoid debts, and understanding the real meaning of using credit
cards.
5 Trends Compelling Financial Literacy
- Consumers shoulder more of the financial decisions.
- Most consumers are asked to choose from various investment and saving products.
- There is a lack of government aid these days.
- People today have longer life spans.
- The financial landscape is changing because of today’s technological advances.
Why Financial Literacy Matters?
A study from financial services company revealed that those
with high financial literacy plan for retirement and have double the wealth of
those who don’t plan for retirement. On the contrary, those with low financial
literacy borrow more and have less wealth. Also, they don’t invest and they
have a poor understanding of the terms of their loans or mortgages. An increase
in financial literacy will have a thoughtful impact on consumers, along with
their ability to provide for their future whilst avoiding any pitfalls of debt.
Financial literacy will have a great impact on the daily
decisions people make when buying a home, trying to balance a budget, ensuring
an income at retirement, and funding a child’s education.
Trivia Info Resource: catchtherisingtide.com.au
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