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Financial Literacy

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5 views9 pages

Financial Literacy

Uploaded by

eyeager1029
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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FINANCIAL LITERACY

MEANING

• Financial literacy is the possession of skills, knowledge, and behaviors that allow an
individual to make informed decisions regarding money. Financial literacy, financial
education and financial knowledge are used interchangeably.[1] Financially
unsophisticated individuals cannot plan financially because of their poor financial
knowledge. Financially sophisticated individuals are good at financial calculations; for
example they understand compound interest, which helps them to engage in low-credit
borrowing. Most of the time, unsophisticated individuals pay high costs for their debt
borrowing.[2]
BENEFITS OF FINANCE LITERACY

• Advantages of being financially literate


• Ability to make smart and sound financial decisions.
• Ability to create and maintain your budget sheets.
• Expense control and minimisation.
• Reduction in stress and financial pressure due to well-planned finances.
• Profits and growth due to smart financial investments.
SAVINGS

• The term savings refers to the income set aside to be used at some point in the
future. A savings account is meant to have a nest egg of cash available for
emergencies or big-ticket purchases.
INVESTMENT

• financial investment is an asset that you put money into with the hope that it will grow
or appreciate into a larger sum of money. A few of the most common types of financial
investments are CDs and bonds, which pay interest to the owners.
THE RULE OF 72

• Do you know the Rule of 72? It's an easy way to calculate just how long it's going to take
for your money to double. Just take the number 72 and divide it by the interest rate you
hope to earn. That number gives you the approximate number of years it will take for
your investment to double.
TYPES OF BANK ACCOUNT

• Current account. A current account is a deposit account for traders, business owners,
and entrepreneurs, who need to make and receive payments more often than others. ...
• Savings account. ...
• Salary account. ...
• Fixed deposit account. ...
• Recurring deposit account. ...
• NRI accounts.
DIGITAL BANKING

• The Digital Banking definition is banking done through the digital platform, doing away
with all the paperwork like cheques, pay-in slips, Demand Drafts, and so on. It means
availability of all banking activities online.
THANK YOU

VANITA B. COM (P)


SECTION –A
24BPA049

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