Why you are in middle class category for long?

Financial Literacy is important for financial growth of the individual as well as economic growth of a country. It is just 24% financial literacy rate in India is way behind other countries. According to a global survey, India is home to almost 20% of the world’s population, however, 76% of its adult population is not even aware of the basic financial concepts. It is the reason Indian are not becoming rich and continue in middle class category. This blog let us discuss with is financial literacy and what to know from that

Financial Literacy is the ability to understand basic financial concepts and the possession of knowledge and skills required to make informed and effective financial planning. It is about knowing how to generate, spend, invest and save money.

Lack of basic financial knowledge creates poor investments and financial decisions.

Financial literacy includes savings, insurance coverage, emergency fund, gold investment, real estate investment, mutual funds and stock investments.

Are you financially literate?

Ask below questions to check your financial knowledge. If you are not sure for few question, you have to start learning the financial knowledge.

Are you able to understand compound interest?
Do you how to increase your credit scores?
What is Nifty Index mutual funds ?
How much insurance coverage required for you?
What is term insurance?
How much should be your insurance premium based on your income?
Why money in account is loss against inflation?
What is your retirement plan?
What is the plan for your kids higher education?
How much gold you should own for as a emergency fund?
How many investment for long-term?
What is P/E and PEG of a stock?
How much down payment for your home?

If you are not able to answer any one of the question, you have to start financial knowledge. In this series, we would explore each and every aspects of financial planning. Stay Tuned!!!