Introduction:

Welcome everyone to today’s presentation on financial literacy. We are going to discuss

some essential aspects of financial literacy then understanding the fundamentals,
Strategies for Enhancing Financial Literacy, benefits of financial literacy and then will
conclude the session.

So let's begin with the definition of financial literacy (slide -2). Ask people to define first.

Slide -3

In a world where financial decisions shape our everyday lives and long-term prospects,
understanding the fundamentals of managing money is very important.
Financial literacy gives you skills and knowledge that enable you to make informed
financial decisions, navigate through complexities of the financial world, and ultimately
achieve your financial goals. From budgeting and saving to investing and retirement
planning, if you are proficient in managing financial matters, you can control your
financial future and build a solid foundation for economic stability.

But you know what, here the case is completely different.

Though it’s very important to have knowledge of finance management, it is still a

challenge for many. Studies have shown that a significant portion of the population
lacks even basic financial knowledge, leading to disastrous consequences such as
(slide- 4) debt accumulation, inadequate savings, and financial insecurity.
Have you ever thought, in every educational institution/university, they teach us and
make us job ready to survive in the market but nowhere they teach us how to manage
our finances and financial needs. We have at least one person in contact who is well
educated, earning a good amount but still financially unstable and buried under huge
debts, why? Because they are irresponsible when it comes to managing money.

slide-5

Now let’s discuss importance of Financial literacy:

Slide-6

1. Decision making:
 ● Financial literacy gives you knowledge and skills so that you can make informed
financial decisions.
● It reduces financial stress and improves overall well-being.
● It promotes economic stability and growth at both individual and societal levels.
● It builds a foundation for generational wealth and financial security.

2. Budgeting and savings:

● Creating a budget helps you to track income and expenses, it helps you to
prioritize your spending, and allocate resources wisely.
● Developing saving habits enables individuals to build emergency funds, it
helps you to achieve your financial goals, and secure your future.

3. Debt management:
● Knowing how to manage debt responsibly, including loans and credit
cards, is essential for maintaining financial stability.

4. Investment Decisions:
● Understanding investment options and risks helps you grow wealth and
achieve long-term financial goals very quickly
5. Retirement planning:
● Who doesn’t want to just sit back and enjoy their life in later periods when they
grow old.
● Planning for retirement ensures financial security in later years through
pensions, savings, and investments.
6. Risk management:
● It's essential to identify and assess potential risks that could affect one's
financial stability. These risks may include market volatility, job loss, health
emergencies, natural disasters, or unexpected expenses.
7. Financial independence:
● If you have followed all above, great..! You are now financially
independent.

Slide 7: now let's discuss fundamentals of financial literacy

Slide 8:
Budgeting: Budgeting is a financial management tool that involves creating a plan to
allocate income towards various expenses, savings, and investments over a specific
period, typically monthly or annually. The primary goal of budgeting is to ensure that
spending aligns with income and financial resources are managed effectively to achieve
our financial goals.

Here we have 5 steps on “how to perform budgeting”

1. Assess financial resources: identify how many income resources you have.
Some people have their corporate jobs as their primary source of income and
some may have side hussle too as secondary sources.
2. Determine expenses: it includes various types of expenses such as fixed
expenses like your rent, insurance, EMIs then variable expenses like groceries,
dining out clothing and personal care another one is saving and investment
where you put some portion of your income into investment. Emergency funds
for any unexpected financial emergencies.
3. Set goals: Establish specific financial goals, such as paying off debt, if you have
taken a home loan by saving and investing and multiplying your you can close the
loan or the debt in very less time this brings motivation for budgeting efforts
4. Create plan
5. Track your progress so don't just sit back and anticipate, create an action plan,
take a blueprint of it and track your progress regularly so you don’t deviate from
achieving your goals.

Slide 9

Savings: so saving is another fundamental aspect of financial literacy which helps us to

be financially stable and to achieve our financial goals. And we can have it in below
mentioned steps to make it more effective.

1. Think one percent at a time: it is a principle behind incremental saving.

Incremental saving involves consistently increasing savings by small increments,
such as one percent of your income. So if you have a bad habit of spending more
and saving less, it will help you to become more consistent over a long term.
2. Prioritize your future self: Your future self represents the person you'll become in
the future, whether it's in a few months, years, or decades. Prioritizing your future
self means making decisions and taking actions today that will benefit you and
your future well-being. So how can you do that? Here comes the power of saving.
Building an emergency fund is one way to prioritize your future self. Having
financial safety ensures that you're prepared for unexpected expenses or
 emergencies without derailing your financial progress. And how can one forget
retirement planning? Saving for retirement is a critical aspect of prioritizing your
future self. By contributing to retirement like we have NPS (national pension
scheme) and many institutions providing plans for retirement can secure our
future.
3. Slow and steady wins the race: so this phrase shows the importance of being
consistent and making gradual progress over time. Just as the tortoise and hare
story in which tortoise triumphs over the hare through steady perseverance, so
we can also adopt a similar approach in our financial lives and can achieve
significant success.

Investing: I don’t have much to say on this, i mean it depends on individuals risk taking
capabilities.

Conclusion:

So thank you all for joining this session,

I hope I was able to encourage you all guys through this session to wisely manage your
financial needs and achieve your future goals to live a peaceful life.