Finance:
In simply term finance meant management of large amount of money.
Financial literacy:
It is the ability to understand the various financial skills, including personal finance, budgeting, and investing.
Personal finance:
One of the core benefits one can get from financial literacy is personal finance. One can make appropriate decision with the help of this skill such as investing, insurance, real estate, budgeting, retirement and tax planning.
Any person who earning for bread and butter has various wishes to accomplished and not all people are such prosper to fulfill dreams for that they tend to invest their money to earn extra.
Now if we looking aspects of investment there are various types like to invest in gold, real estate, government security, shares, and many more. Here financial literacy plays vital role. If a person financially literate he will definitely go for risky investment like share and mutual fund and SIPs While ordinary people go for safe investment like gold and government security.
E.X. why warren buffet called the investment guru.
How financial literacy help the entrepreneur.
· Financial planning: newly business person has many things to do in terms of finance but they can plan out it if financially sound they are like they can identify whether they have to make expense or not, it will help him out or not and many more.
· Budgeting: once you are working in the business world one has to always look for expense and income so they can monitor the things through the budgeting.
· Investing: as said above in personal finance
· Dividend decision: finance helps the person to provide dividend or retain in the business.
· Working capital decision: finance gives the entrepreneur insights about the working capital needed and how to fulfill the need for same.
How strong are your finance-related skills? Discuss the importance of financial literacy in the life of...
How strong are your finance-related skills? Discuss the importance of financial literacy in the life of an entrepreneur; give specific examples from your experience. (200-300 words)
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