Clock Nepal, Kathmandu
The knowledge of business financial management is another mission of financial literacy. How to manage financial management. Financial literacy is also about related knowledge of financial management such as where to collect resources, where to invest, income analysis, investment analysis staff recruitment method, capital decision, asset liability, income and expenditure cash flow, current and future value of rupee. The motive of financial literacy is business development and expansion, business creation and promotion. A financially literate person can make increase income, how to promote his or her work and business, and how much income can be earned and increased decision making ability. Correspondingly, the purpose of financial literacy is to imparting providing knowledge about customer relations, market management, product management, inventory management, etc.
Source of income:
What is your total income and how much you pay tax and how you can earn more should be analyzed. We have to analyze that how much investment is needed in education, training and skills development. Information of needs and income should be kept. While making financial goals and plans in a family, we have to take care the source of income.
Savings is the main purpose of financial literacy. A person who saves regularly is a financially successful person. In marriage, prohibition, buying a car and big expenses that may happen we have to save. For this, regular savings should be done and spent separately. You have to save by opening a bank account. Also, make short-term and long-term investment plans. Before investing detailed decision should be made. You should also save money at time of vacation and child’s education and other expenses.
Accounting of transactions:
As earning protecting and protecting is important. Peoples earns but they cannot afford to protect their wealth are becoming poor.
Unless people are aware of the security of their wealth, there can be no lasting economic prosperity. By taking loans from microfinance institutions poor families are raising buffaloes and cows. Instant the death or unproductive death of a cow or buffalo can lead a major financial crisis. That’s why, livestock and business insurance should be made mandatory in the life insurance. Correspondingly, the common man should taught to keep an account every transaction, to pay the bills and to be safe from counterfeiting and fraud.
Pre-planning for expenses:
By the reason of financial literacy, low-incoming people will be able to save by cutting costs. People are learning to save by cutting their cost. The level of financial literacy affects a person’s standard of living. Financial literacy also provides the ability to create business with other people’s money and make more profit by increasing sales. A financially literate person can use economic opportunities, achieve goals, provide financial security to the family and create a financially strong society.
The importance of financial literacy:
Financial literacy is important for making economic and financial decisions with perfection and efficiency by improving economic and financial capacity. Debt education: Loan education is known about what kind of loan facility is available in the market for business operation and other needs, what process should be completed to get that facility, how much service fee, interest should be paid, how much does it cost to get a loan, what is the repayment process, etc.
Information on financial security is provided such as how to secure the income and property you have earned, what security measures can be taken, and how much it costs to secure.
Objective of the financial institution:
The main objective of financial education is to choose the best financial services that suit your needs and situation, to make decisions and to increase income by increasing entrepreneurship.
Necessary to include financial literacy in the curriculum:
Financial education needs to be extend in every individual, household, toll and community. For this, training, adult learning materials should be developed and plan should be prepared. For every children it is necessary to include financial literacy in the curriculum to increase financial literacy.