Common phrases such as ‘invest in IPOs’, ‘diversify your portfolio’, and ‘buy the dip’ have been echoing in the news throughout the year 2021. The colossal world of finance has literally exploded this year. According to an article by Business Standard, the active investor count rose by a whopping 10.4 million last year. That continued to this year and we witnessed stock market investments becoming a part of daily conversations. But amongst this fad, where were you? Did you get a chance to explore any financial instruments? Did you ask your parents about their investment strategies in the reviving market? Was finance ever a part of your academic or peer-group discussions?
There’s a high chance that your answer to one or more of these questions might be ‘No’. And, it is quite valid. Financial literacy for students still has a long way to go. But does that mean you should sit idle and wait for the ‘right time to learn about finance’? Certainly not.
Why Should Financial Literacy Be Important To You Now?
Student financial literacy is a fundamental life skill that every individual needs to be equipped with. But what’s the hurry?People learn things with time, so will you. Isn’t it?
No. That is a tale of the past. Do not let yourself be deluded by that.
Let’s face the fact – your generation is smart! On top of that, you have an abundance of resources that were a dream for the previous generations. It takes you a few hours to learn how to use a new gadget, create a smart sensor, build a cool robotics project, or even decode a cryptic message.
Reason? Both these population groups never got a chance to develop money management skills at school.
Result? Millennials find themselves in a fix when it comes to day-to-day finances, let alone securing their future.
What about Gen Z? Well, you’ve got time in your hands! Time is the only thing that will assist you in
So, you can make money work for you! You can start improving your financial skills right away, and achieve financial independence as soon as you want. But, how?
Did you know, when you start learning how to play the guitar, the first thing you do is to learn four basic chords? These basic chords are essential for beginners to start with so that they can eventually build upon the others. Before you wonder why we’re talking about guitar lessons here, let us tell you that today you’re going to learn the top 4 chords of your financial literacy guitar!
4 Lessons That Will Help You Improve Your Financial Skills
Lesson #1: What Is Money?
An old man had all his gold buried outside his house. Every day, he used to dig in and have a look at it, cover it back with mud, and come back. Once a passer-by noticed him, timed his activities, and soon fled away with all the gold.
The point that this timeless fable is trying to drive home is that money is of no use if all you do is earn and hoard it. If you observe your daily life, money acts as an enabler for you. Money enables you to live your life the way you want to. You use it every single day in exchange for your necessities and wants.
Money is more than just those figures in your bank account. Just like most crucial things in life, money is fragile. If managed judiciously, it can accelerate your progress towards your goals. Effective money management for students leads to a sustainable lifestyle. Money management, if done right, can empower you to do whatever you want, from wherever you like, whenever you wish to.