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Reviewed by Ibnujala
Influencing everything in our lives, money plays a prominent role in our day-to-day activities and interactions. However, are we all aware of the effective ways to manage and utilise our financial needs? Have you been in a situation where you were left clueless about a financial deal and asked yourself how to improve your financial knowledge? If so, you are not alone.
According to a 2019 report by the National Centre for Financial Education, the financial literacy rate in India was just 27%, which is significantly lower compared to developed nations. Although financial matters are a necessity, many of us have limited knowledge about them.
However, the good news is that you need not be an expert to get started in building your financial knowledge. By referring to basics, seeking help from financial experts, enrolling in online courses, listening to financial podcasts and watching TV shows, and utilising many more opportunities, you can increase your financial literacy.
This article will guide you through the key methods that can help improve your personal finances and financial education. So, whether you are trying to plan your expenses more effectively or understand your credit score and other financial information, this article will help kick-start the initial steps in enhancing your financial knowledge.
A lack of financial knowledge can make people vulnerable to financial traps. Without having a proper understanding of topics such as interest rates, credit scores, compound interest, and more, the chances of people falling for predatory policies and scam offers are higher. Therefore, improving your financial knowledge helps improve your financial well-being.
One of the best ways to enhance your financial knowledge is by subscribing to reputable financial newsletters, blogs, and magazines. Various financial magazines, such as Forbes India and The Economist, are available in the market offering smart strategies. So, subscribing to these platforms will provide insights into various financial matters.
Moreover, you will be able to learn about recent events and happenings in the financial field through this newsletter. Similarly, financial blogs like Financial Samurai offer similar information, which can be learnt at your own pace.
There are various online and offline courses that will help people improve their financial knowledge. From basic financial topics to more complex and core concepts, you can learn almost all the major financial concepts through platforms like Finquo Versity. This platform has experienced instructors and experts who offer simple and easy-to-follow classes on various fields in finance.
Similarly, platforms like Udemy, Coursera, and others can also be beneficial to improve financial literacy. So, taking these courses will help you improve in financial affairs and manage factors like insurance, investments, debt management, and more.
Finance podcasts can also be utilised to improve your financial literacy. People can listen to podcasts from anywhere, based on their convenience. So, no matter whether you are trapped in traffic, cooking your favourite meal, or taking a morning walk, you can utilise these times to enhance your financial education through finance podcasts.
Some of the reliable and popular podcasts include The Ramsey Show, Planet Money, We Study Billionaires- The Investor’s Podcast Network, and so on.
With each passing day, social media is gaining more importance in everyday life. From Facebook and Instagram accounts to LinkedIn, Reddit, and YouTube, social media handles are not only used for entertainment.
Numerous people have been following their favourite financial experts, including Robert Kiyosaki, Martin Lewis, and Tony Robbins, as they offer insightful suggestions and tips in financial matters.
Apart from articles and videos from experts, several Facebook groups offer platforms for people to engage in insightful discussions and conversations with like-minded people and share resources.
If you prefer reading books, you have an abundance of resources to excel in financial matters. You can refer to Insider to gain insights into the books that offer the best personal finance advice.
To those who are unaware, Insider is a platform that provides a list of books that can be referred to manage your financial needs, improve budgeting, and also help you learn more about financial matters, including compound interest, credit scores, credit card and debit card usage, and more.
Rich Dad Poor Dad by Robert Kiyosaki, The Psychology of Money by Morgan Housel, The Total Money Makeover by Dave Ramsey, and I Will Teach You to Be Rich by Ramit Sethi are some of the popular finance books that can be referred to, especially by beginners.
With constant evolutions and developments, digital finance management tools have revolutionised the way users manage their finances.
From mobile banking applications to online investment and credit management platforms, utilising finance management tools like Mint, QuickBooks, Xero, and inventory tracking will not only help improve financial knowledge but also ease finance management.
Moreover, these finance management tools offer various educational resources such as articles, tutorials, webinars, and video tutorials, increasing the financial literacy of their users.
Numerical skills and money management are interconnected. In simple words, numerical skill is the ability to understand and use mathematical concepts in different situations.
So, without improving your numerical skills, money management can be quite challenging at times. So, along with financial learning, brushing up on your numerical and mathematical skills will benefit you in becoming more financially literate.
Seeking professional help can be a great way to improve your financial knowledge. With professional financial planners, people can easily deal with their financial needs.
Along with financial planning and management, these professionals also help users learn more about financial matters by offering insightful advice on budgeting, investment, banking, setting financial goals, and finalising financial decisions.
Moreover, these professionals will also help you access current situations and events in the financial field, which helps make beneficial decisions.
Starting your journey in building your financial literacy may be overwhelming at first. However, with basics and simple steps, you can kick-start building your financial knowledge.
As mentioned, learning the basics is the most important part. So, begin with the basics of finance, such as simple budgeting, and later move to core topics like compound interest, debt management, and wealth building.
Having a deeper understanding of the 5 important principles of financial literacy will be of great help in the initial period. These principles, including earning, spending, saving, borrowing, and investing, help make informed decisions and act wisely, leading to financial well-being.
Improving financial knowledge is not something that happens overnight. It is a slow journey that needs to be built with consistency. Beginning with small steps and learning basics like budgeting, investments, savings, and financial security, you can lay the foundation for a long-term benefit in the financial field.
As we have already discussed, you can improve your financial literacy by considering various factors like subscribing to a newsletter, seeking professional help, enhancing numerical skills, utilising finance management tools, using social media platforms, and more.
Remember, financial knowledge is crucial, as it helps improve personal finance management, enhance financial security, and avoid financial traps. So, improving your financial literacy is not a quick process but an ongoing journey that needs to be moulded and developed with time. With consistency and a little attention to detail, you can achieve your financial goals and become rich in life.
Financial literacy is a skill to understand and use various financial abilities such as personal management, budgeting, investing, and more.
The 5 major principles of financial literacy include earning, spending, saving, investing, and borrowing.
Individuals should learn basic financial skills like saving, budgeting, investing, and borrowing.
Uma Nair
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
