Why financial education is important in Nepal
Financial education simply means to have knowledge and skills for the management of your finance or money. It develops an understanding of saving for personal development and for the family while also making investments. Financial literacy is also very important for students and youth to start saving early and start investing early to reduce future financial risk. Hence having financial education is important in Nepal.
Financial literacy is important in Nepal also to influence the behavior of saving and reduce the economic burden of debts in people. Lack of financial education can lead people to the pitfall of debt even with a high income so, these skills should be given as a person grows. Financial knowledge should be given to students at an early level in school, college, and university.
What skills include in Financial Education? and why it is important in Nepal?
It includes skills and understanding to create a budget, having saving goals, and managing debts. There are various ways and opportunities of saving in Nepal. A person can create a bank account for savings, make investments in the stock market or even purchase an insurance policy to reduce future economic risk. Another way to manage your finance can be by getting your credit report at the end of the month or keeping track of your credit score.
People should be part of training or educational programs on finance to increase their capability of making correct financial decisions. These knowledgeable programs will develop a saving attitude in people. This will also help them in better analysis of business, savings, and investment products. This will save people from bankruptcy, loans and save them from unnecessary spending. Therefore, financial education is important for the young to old age group so management of finances should be taught starting at the school level.