Financial education by Nikhil verma.

Before starting my blog, I would like to tell you why I choose this topic ,  FINANCIAL  EDUCATION. 

According to a global survey, about a staggering 76% of Indian adults do not understand basic financial concepts and are unfortunately financially illiterate even today. The survey confirms the financial literacy rate in India has been consistently poor as compared to the rest of the world.

So, I am here to share my knowledge about financial education..

 Before starting my topic I would like to inform you  that there are three types of education 

1. Academic education 

2. Professional education 

3. Financial education 

so, what is financial education? the answer of this question,  is in the question.

Financial education means education/knowledge about the money/finance.

Why I am here to discuss this topic !

Because in today's life every thing is depends upon money I.e, if you have money you have everything.

Example- if you have the money then only you are able to buy the phone by which you are reading my blog.

I would like to share one secret about  money I.e, there is no limitation of earning money, you can earn money limitless , if you yourself know that you will be rich person one day then that affirmation will help you to become rich.

 

#why in india there is less financial education?

Because we indian take financial advice from our parents,  who themselves are in rat trap of this system. If they are in trap and they give advice to you you will also become the part of that trap.

So, my advice Is to listen those person who is having the right knowledge of this money game like #warren_buffet.

He once told that listen to those people like whom you like to become..

#Types of earnings-

1. Employee-  The person  who do jobs for other .if he work ,he get paid #work=money.95% people are in this category ,having 5% money of economy 

2.self-employed- The shop owner. If he work, he will earn.#work=money. 95% people are in this category,  having 5% money of the economy 

3.  Business- The person who has started his startup and doing well and his employee are working for them. #money+ work+time=money.  Only 5%,  having 95% money of the economy 

4. Investment-The person who invest the money. #money=money it means money is working for that person. Only 5%,  having 95%money of the economy. 

So, why I choose the topic save vs invest. 

Because we Indian think that saving money is good option but it is totally wrong. 

Let me first tell you the difference between both- 

1. Saving is setting aside money you don't spend now for emergencies or for a future purchase. ...
2. Investing is buying assets such as stocks, bonds, mutual funds or real estate with the expectation that your investment will make money for you.

Let me take an example it will clear you why saving is a bad option.

Suppose you have $100 and you save that money in you house and after 10 years you decide  to withdraw that money and after 10 years that $100 will be $100 and if you choose the second option that is investment and you invested $100 and let take 12%p/a minimum return then after 10 year that $100 will be will $220. So this is the power of investment. 

 

In india why people hesitate to invest their money?

Because they dont have the proper knowledge about the investments. 

But keep in mind one thing 

Dont save your money,  invest your money.

By which you dont have to work for money money will work for you. To be continued....