Financial literacy is the ability to comprehend how money operates.

Like how someone makes money,

manages and invests it, and also spends it, especially when it comes to charitable donations to assist
others. To know money, it is required to understand the core values of financial literacy, such as:
monetary objectives, budgeting, investment, superannuation, contracts, and employment models.

Awareness can increase financial literacy. The level of financial literacy is currently very small as our
educational system teaches us that money is the root cause of all evil. But is that really? And from
paycheck to paycheck, we are taught to operate. Even individuals who believe they are financially
educated have become involved in network marketing or direct marketing.

The absence of economic literacy can lead to bad economic decisions that can adversely affect an
individual's economic well-being. The federal government has therefore established the Financial
Literacy and Education Commission, which offers funds to individuals who want to know more about
financial literacy.

India is home to nearly 20% of the world's population, but 76% of its adult population is not even
conscious of the fundamental economic ideas. According to study reports, the real importance of
Financial Literacy in India was poor compared to the rest of the world today.

There are also certain erroneous views connected with economic literacy in India, the most common
being the myth that someone who is' educated' or' wealthy' is also' financially literate.'

It is also important to note that the rich don't even need financial literacy. There can be noticed fresh
trend where the quality of the credit card he owns is assessed by a individual. A standard 50 thousand
loan in India would be charged at a 12 percent annual interest. But on late payments, credit cards are
charged 3.2 percent per month. And we ignore this reality by causing more individuals to fall into the
cycle.

People with a powerful understanding of economic values can better comprehend and negotiate the
economic landscape and prevent economic hardships. Diversified revenue can only assist us to solve the
huge debt. Once in debt, it's a vicious cycle that never ends.

Importance of financial literacy:

It helps to improve the economic understanding of people.

It gives clarity to fundamental economic ideas and values such as compound interest, debt management,
financial planning, etc.

It helps to make suitable economic choices about investment, savings, insurance, debt management,
home purchase, child education, pension planning, etc.

It enables people attain economic stability and liberty of finance.

It helps to understand the assets and liabilities distinction. By inculcating economic expertise and debt
policies, it allows you to be debt-free.

It's going to offer you peace of mind.

It is a myth that financial literacy is more essential for adults. Only when we begin to improve our
country can we accomplish the required outcomes from financial literacy.The key is continuous economic
learning and knowledge work. Most importantly, the need for the hour is early inculcation of financial
literacy. The younger we are when we spend and prioritize the basics of financial planning, the wealthier
we are going to be.