Financial Literacy...So What is it?

Growing up, I wasn’t very fond of financial literacy, let alone know anything related to it, I was conditioned to study whatever was put in front of me, all throughout high school, whether it was business ratios, marketing strategies, or various sources of finance. I never took a deep dive or looked deeply into these topics, which I now realize is extremely essential and valuable for the younger upcoming generation to understand.

You might be wondering, what exactly is financial literacy? In the easiest way possible, Financial literacy is the ability to understand and use financial skills like budgeting, investing, and managing money. This knowledge is extremely valuable yet crucial because it encourages people to plan wisely for their children's education, manage household expenses, and prepare for their future needs.

This planning ultimately leads to financial stability for one’s family and may even help an individual stuck in a poverty trap to get out of that vicious cycle. Financial education also improves the independence of young people in certain ways.

When people understand money, they can rely on themselves instead of looking to others for support. This freedom allows them to make their own decisions without following the wishes of the family. Financial education teaches them to save well and spend wisely.

In addition, financial education can open careers in areas such as investment, banking and accounting. People who enter finance related jobs like CFA (Chartered Financial Analyst) are useful, have financial knowledge and can develop quickly.

It even encourages young people to start their own business, which often leads to a successful business that secures their future.

Finally, there are many ways to become financially literate, but books are ALWAYS a good place to start. *Rich Dad, Poor Dad* by Robert Kiyosaki and *The Psychology of Money* by Morgan Housel are great resources for anyone looking to learn about money!

By:Tehreem Ali