Question

explain the importance of financial literacy in both in your life and your or other people' s career. Also explain how to promote financial empowerment within a community.

Answer 1

Financial Literacy could be considered as one of the most important form of education in anyone's life. Consider this example, if I give you $100 and ask you to invest it somewhere, 90% of people under such conditions wouldn't even consider stock market or mutual bonds and are likely to put the money into their bank accounts. However, if we teach them the way they can earn a greater percent of return on mutual fund with slightly more risk, now more people are likely to invest in mutual funds, such is the power of financial literacy. Most of the time, we are faced with situations that want us to a rational informed decision, like
How much should I save today to get $2m when I retire?
How much should we spend on credit to not degrade our credit score?
Most importantly, an important part of our career as well,
How much tax should I pay and how to invest properly to not pay taxes on our income?
It would be very hard for someone without appropriate financial knowledge to take correct decisions in all such concerns. On a career basis, one needs to plan out his career and based upon the plan, he needs to take decision that can help me achieve his goals, like mentioned earlier, how much should I save today such that I have $2m when I retire? For someone who hasn't heard about annuity and how things work, it wouldn't be possible to take a decision. So financial literacy is equally important in our careers as well.
Today's world is connected more than ever before so financially empowering people shouldn't be as complex as it used to be. One can make people aware about hundreds of courses available online and encourage them to take them up, online forums on websites like reddit or groups on facebook can help people to spread awareness among people about importance of financial literacy. Such methods are new and requires people to connect with others in order to get benefitted. For people who fail to do so, the best way in the real-world in organising workshops and meetups wherein people learn aspects of financial world and express the issues they can facing along with it.