FINANCIAL
LITERACY INDEX-
Financial literacy is the ability to understand and effectively manage money to make informed decisions, achieve financial goals and lead a secure and independent life.
It includes an understanding of:
Earning money
Budgeting Saving Investing Borrowing money money money money
1 EARNING
Understanding how money is earned and the value of hard work.
1. How an Individual Earns Money
2. Where an Individual Spends Money
3. What Happens When Spending Exceeds Earnings
4. The Debt Trap
2 BUDGETING
Planning how to use money wisely and tracking income and expenses.
1. How to Create a Budget
3 SAVING
Setting aside money for short-term goals, future needs and emergencies.
1. Importance of Saving and Types of Savings
4 INVESTING
Growing money over time through informed investment decisions.
6. Importance of Revisiting Your Portfolio Regularly
7. Low-Risk, Low-Return Investments
8. High-Risk, High-Return Investments 9. Warren Buffett's Principles on Investing
4.2 INVESTMENT OPTIONS 1. Savings Account
2. Fixed Deposit Account 3. Equity
3.1 Understanding Stocks 3.2 Why Invest in Stocks
3.3 What is the Stock Market
3.4 Types of Stocks
3.5 Steps to Trade in the Stock Market
3.6 Risks Associated with Stocks 3.7 Bear Market vs. Bull Market
3.8 Major Stock Markets
3.9 Key Considerations Before Investing
3.10 How to Evaluate Companies 3.11 Basics of Financial Statements
3.12 Using Financial Statements to Make Better Investment Decisions
3.13 Basic Caution vs. Value Distraction Mutual Funds
4.1 What is a Mutual Fund
4.2 Types of Mutual Funds
4.3 How to Invest in Mutual Funds
4.4 Risks Associated with Mutual Funds 5. SIP-Systematic Investment Plan 6. Real Estate
Understanding credit, loans and debt and learning how to use borrowed money responsibly
1. Loans
2. EMI-Equated Monthly Instalment 3. Determining the Maximum Loan You Should Take
6 PROTECTING
Managing financial risks and protecting yourself and your family from unexpected financial events
1. Insurance
TAX PLANNING
Planning your taxes wisely to save more and grow your wealth
1. Tax Planning for Investors