The pressing need for financial education comes from two areas.
Firstly is the deterioration of personal finances. Today have big expectations and want luxurious lives, have credit card debt, and making risky investments.
Second is the proliferation of new, and often complex, financial products that demand more financial expertise of consumers. Turbulent market conditions and changing tax laws compound the need for sound financial education.
Even Government servants are moving from defined contribution regimes to schemes with benefits for retirement, at their option. Therefore, retirement planning becomes very important.
Some advantages of financial education are:-
• Helps build a secure financial future. Lack of financial knowledge can affect an individual’s or family’s ability to save for long-term goals and make them vulnerable to severe financial crisis. It is easier to know .how to invest in share market
• Prepared for financial emergencies. By incorporating contingencies in your financial plan you are ready to face unseen circumstances head on.
• People who are financially literate are reluctant to buy financial products that they do not understand and thus do not fall for marketing gimmicks.
• Easy to understand higher levels and other equity and commodity tips related to market investments.
• You become more aware of questionable lending practices adopted by banks and other lenders to sell their products.