A Day to Take Control of Your Finances- National Financial Awareness Day (14th August)

 

"The more you learn about money, the more you'll have." - Robert Kiyosaki

Robert Kiyosaki narrates the tale of his two fathers—his biological father and the father of his best friend—in his book Rich Dad, Poor Dad. His biological father was an accountant with a master's degree. He thought that getting a good job and working hard were the keys to financial success. But the self-made millionaire father of his closest friend thought that the secret to financial success was to learn how to be financially literate and make money work for you.

The Rich Dad Poor Dad tale serves as a potent reminder of the value of financial literacy. It demonstrates that everyone, regardless of background or educational level, can become financially successful provided they have the necessary knowledge and abilities.

Understanding and controlling your finances are two characteristics of financial awareness. Everyone should care about it, regardless of their financial condition or salary. It covers things like understanding how to set aside money for savings, invest, and safeguard your possessions. The process of learning about financial literacy is known as financial education.

National Financial Awareness Day, which is observed on August 14, aims to promote financial education and literacy. The subject for this year is "Taking Control of Your Finances," which is appropriate given the state of the economy.

Financial literacy is crucial for many reasons. First of all, it might enable you to make wiser financial choices. Understanding how money functions can help you make decisions that will enable you to achieve your financial objectives. Second, financial knowledge can aid in preventing financial issues. You're less likely to overspend or accumulate debt if you know how to set up a budget and save money. Third, having financial literacy can aid in wealth accumulation. Your assets might increase over time if you invest your money effectively.

India now has a mixed level of financial understanding. One the one hand, there has been an increase in recent years in the importance of financial literacy. This can be attributed in part to the government's initiatives to encourage financial literacy as well as the growing accessibility of financial resources and information.

However, India still suffers from a severe lack of financial knowledge. Only 25% of Indians possess fundamental financial literacy abilities, according to a 2017 poll by the National Financial Literacy Mission. The great majority of Indians are therefore ill-equipped to make wise financial decisions.

 

The government has started a number of measures to promote financial education in order to address this issue. These include the National Financial Literacy Mission, which offers adult and youth financial education programs. A variety of websites and apps for financial literacy have also been released by the government. Numerous non-profit groups are working to advance financial literacy in India in addition to government programs. These groups provide a range of financial education courses, including online classes, workshops, and conferences.

One such effort was held by Indira Global Business School. In 2023, IGBS organized an event on financial awareness named ARTHABODH. The event was aimed at raising awareness of the importance of financial literacy and providing participants with the insights of Government budget proposed. ARTHABODH was a two-day event that featured well-read speaker and a debate competition on the budget proposed with the topic: “Is this a common man’s budget?” The event was a success, and it helped to raise awareness of the importance of financial literacy among the students.

There are many resources accessible to you if you're interested in learning more about financial literacy. You might contact one of the many nonprofit organizations that provide financial education programs or go to the government's National Financial Literacy Mission website.

The importance of financial literacy is emphasized on National Financial Awareness Day. You may improve your financial decisions and create a better financial future for yourself by taking the time to educate yourself about your finances.

The following advice can help you observe National Financial Awareness Day:

• Test your understanding of financial literacy by taking a quiz.

• Check out a publication or article about financial planning.

• Participate in a training or seminar on financial education.

• Speak with a financial consultant.

• Make a list of your financial objectives.

• Commence saving money.

• Put your cash to work.

• Guard your assets.

You may take charge of your finances and enhance your financial wellbeing by following these steps.

What are you still holding out for? start now!

I hope this is useful.

                                                             

Blog by: SURUCHI VISHNU (MBA 1^st year)

Email- Suruchi.Vishnu@indiragbs.edu.in