Do we really know finance? Well, writing this article aims to answer this oblique question, so let’s dig right into it!
There is a disparity between theoretical and practical knowledge, irrespective of any subject of interest. How much ever a person might know about something, which is theoretical, it does not give a satisfactory understanding of the topic until and unless it has been implemented somewhere. Similarly, when managing personal finance, most people need help managing their own. This is why Financial Literacy at an early age is necessary. Personal Finance is one of the essential parts of financial literacy.
So, the knowledge need not stick to the former itself, and it also includes budgeting and investing. But to handle lumpsum money, the first step is to learn how to make an adequately planned financial affair. Financial literacy is a necessary term that helps to better understand essential financial components such as budgeting, investing, saving, preventing fraudulent activities, credit management, and decision- making during the allocation of finances. For a better understanding, one example would be managing daily expenses. If a person’s income is Rs. 60,000 per month, avoiding unnecessary or additional spending would save some money and could be carried on further for emergency purposes.
Hence, it is high time that educational institutions realize the importance and the necessity of financial knowledge at a blooming stage until it’s too late for a person with a DO OR DIE situation.
~ B. M. Deeksha Setty, Batch 2022-24.