Financial Awareness – One of the Most Underrated Topics

Somewhere between our schooling and real-life checks, financial education was missing for most of us. And by the time we realized its importance, we were already having financial responsibilities right in front of us.

The Financial Education We Never Received

Being a science student, I have never heard much about finances during my school or college days. The only “financial activity” I remember was standing in a queue every month to deposit my school fees at the deposit counter.

There was no money management, savings, investments, loans, taxes, or financial planning really discussed in front of me.

Even at home, my parents often avoided talking about finances, maybe because they felt we were too young to understand such responsibilities. Their intention was always to protect us from stress.

But was that enough for the real world?

Because the moment we enter adulthood, we are suddenly expected to understand:

• How to manage our salaries
• How credit cards work
• How to save and invest
• How to avoid financial frauds
• How to plan for emergencies and future goals

The problem is not that people are careless with money.

The actual problem is that many people were simply never taught financial awareness at the right age.

The Importance of Financial Awareness in Everyday Life

We can actually see the rapid change in the financial world –

Every day a new technology is being introduced, and we have to adapt to it to stay relevant in this fast-growing world.

• UPI payments
• Digital account opening
• Investment via mobile applications
• Instant loans

Technology has made things very convenient for us, but at the same time, it has become highly risky if not judged properly. And here’s the answer for “why financial literacy is important”

At times, people take some decisions in a rush without proper calculations like:

• Investing too much on credit cards, sometimes even beyond their income
• Falling for online scams
• Getting loans without understanding their terms & conditions
• Starting investing based on social media trends without proper research

And after getting stuck in all these traps, they actually feel the importance of financial awareness in daily life.

Basic Financial Concepts

Although there are many books and resources available on financial awareness, if you are willing to start with the basics, here are a few concepts that can help –

• Start with a budget – We know our income and we know the expenses. When we create a budget and start following it, it helps us manage our money very easily. And if we ignore budgeting, expenses might increase slowly.
• Always have an emergency fund ready – Medical emergencies or any other unavoidable crises can happen anytime, and preparing ourselves for that situation in advance is always a good decision.
• Maintaining a good credit score – We never know when we may require a loan, and at that time we do not want our loan application to get denied or to have higher interest rates just because our credit score is low. Hence, we should always maintain a good credit score.
• Savings & Investment – Two different worlds of finance: one is to protect our money, and the other is to help us grow our money. It is highly important to understand this basic difference and take action accordingly.

Stress Buster for You

Today, money problems are one of the biggest reasons for financial stress in most families.
And the issue is not that people are earning less, but the lack of money management skills!

Someone earning 30k monthly and having strong management over money will be living a happier life than someone earning 50k a month and not managing their expenses or not sticking to a budget.

Lack of financial understanding can lead to many problems like stress, anxiety, struggling to repay debts, etc.
Hence, financial awareness always comes as a stress buster and boosts confidence.

Best Time to Start Financial Awareness

People should not wait to get their first salary or their entry into the corporate world.

I don’t think that only people with a finance background should have the copyright on financial education; however, it should be everyone’s right to be financially aware.

Basic financial education should be a part of our day-to-day conversations right from –
• Our school days
• Within families
• Across digital platforms

These simple discussions can help us improve our financial habits even before we start receiving our paychecks.

Where This Leaves Us

I honestly feel that financial awareness is no longer an optional thing in today’s world full of scammers and fraudsters.

I am not asking you to be a finance expert. But protecting our own hard-earned money is something we should really think about.

Understanding basic financial concepts will help in making better decisions and creating a secure future.

Because, in the end, financial awareness does not just change our wallets, it changes our world!!