Financial literacy is the ability to understand and effectively apply various financial skills, including personal financial management, budgeting, and investing. Financial literacy helps individuals become self-sufficient so that they can achieve financial stability.

1. FINANCIAL LITERACY
Presented By: Niraj Malpani
Registration No. : 2017BIT030

2.  Introduction
 Types of Education
 Why financial literacy is important.
 How does financial literacy affect you.
 Important Financial Terms
 Cashflow Quadrant
 How to Increase your Financial Knowledge on your own
CONTENT

3.  Academic education
It is important and helps you gain the ability to read & write.
 Professional education
It is education to earn money by being a productive
member of society.
 Financial education
Financial education is about how money works and how
to make it work for you.
TYPES OF EDUCATION

4. Financial literacy is the ability to understand
 How money works in the world.
 How someone earns money
 How someone manages money
 How he/she invests it (turn it into more)
>>More specifically, it refers to the set of skills and
knowledge that allows an individual to make
informed and effective decisions with all of their
financial resources.
FINANCIAL LITERACY…WHAT IS IT?

5.  Enable individuals to make informed financial decisions and
plan for unexpected financial hardships.
 Learn how to build a budget that works for you, to ensure your
goals and dreams are attainable.
 To sustain financial well being of individuals and their
families.
Take control of your money before
it takes control of you!!!
WHY IS FINANCIAL LITERACY
IMPORTANT?

6.  Of course what you know today affects tomorrow
 You couldn’t drive a car without a license
 That’s why you need to begin learning about how to spend
your money wisely today.
 In order to be profitable and have a vast sum of money in your
future you will need to know how to manage your money,
whether that be by investments, savings, etc.
Eg:- House burning down
HOW DOES FINANCIAL LITERACY AFFECT
YOU?

7. ASSETS
 An asset puts money in
your pocket
FINANCIAL TERMS
LAIBILITIES
 It is something that
takes money out of your
pocket.

8. Procrastination
delaying savings or putting savings off for another time.
 Poor Spending Habits
includes spending on unnecessary items,Impulse
buying,hedonistic lifestyle.
 Lack of Financial Literacy
spending on liabilities or items that decrease in value over
time not knowing how your money will grow or work
for you.
OBSTACLES TO SAVINGS

9. FINANCIAL ILLITERATE
>>“ The love of
money is the root
of all evil.”
>>I can’t afford it.
>>Play safe.
>>Works for money.
FINANCIAL LITERATE
>>“ The lack of money
is the root of all evil.”
>>How can I afford it ?
>>Learn to manage
risks
>>Money works for him

10. CASHFLOW QUADRANT

11. CASHFLOW GAME
INCOME
EXPENSES
ASSETS LIABILITIES

12. INCOME
EXPENSES
ASSETS LIABILITIES
Job or
Profession

13.  Start Now
It is never too late to improve your knowledge about
financial matters. Start with the one you are most interested
in learning and begin to build a solid foundation of
financial know-how.
 Hit the Books
In order to get started, books will become key in your
quest to be financially literate
 Read Magazines and Online Publishers
Think publications like Kiplinger, Financial Times,
Fortune, and there are tons of personal finance bloggers.
HOW TO ACHIEVE FINANCIAL LITERACY
ON YOUR OWN

14.  Get Your Math On
Brush up on some math or look into some basic
formulas that can help you organize your money,
savings percentages, etc.
 Break Your Consumer Mentality
Over your financial literacy journey, you’ll learn
to break the consumer mentality and developer
an investor mentality.
 Protect your greatest Income Generating Asset, Yourself
If you are not healthy and you do not take care of
yourself, you can get sick, meet an accident, get disabled,
or die.
HOW TO ACHIEVE FINANCIAL LITERACY
ON YOUR OWN

15.  It’s not how much money you make that matters. It’s how
much money you keep.
 Rich people acquire assets. The poor and middle class acquire
liabilities that they think are assets.
 Financial aptitude is what you do with money once you make
it, how you keep people from taking it from you, how to keep
it longer, and how you make money work hard for you.
THE SINGLE MOST POWERFUL ASSET
WE ALL HAVE IS OUR MIND !!!
CONCLUSION: THE BIG IDEAS

16. THANK YOU