Presentation1
                     FINANCIAL LITERACY
What is Financial Literacy?
•Understanding how money works
•Earning, saving, spending & investing 
wisely
•Making informed financial decisions
 Financial literacy = life skill, not luxury
Income & Expenses
Income
•Salary
•Business
•Freelance / Side income
Expenses
•Needs (rent, food, bills)
•Wants (shopping, entertainment)
Key parts of financial literacy
• Budgeting- knowing where your money 
goes
• Saving- setting aside money for future 
needs
• Investing- making your money work for 
you
• Debt management- using loan and 
credit wisely
• Financial planning-short-term and long-
term goals
 Budgeting – Your Money Plan
•  Track monthly income
•  List fixed & variable expenses
•  Set saving goals
Popular Rule: 50–30–20
• 50% Needs
• 30% Wants
• 20% Savings & Investments
 Why Financial Literacy is 
Important
• Helps avoid debt traps
• Builds financial security
• Prepares for emergencies
• Achieves life goals (education, home, 
business, retirement)
 Insurance – Financial Protection
• Life insurance
• Health insurance
• Vehicle insurance
 Insurance protects income, not 
creates wealth
 Common Financial Mistakes
•  No budget
•  No emergency fund
•  Overspending
•  Ignoring insurance
•  Falling for quick-rich schemes
Smart Money Habits
•  Track expenses
•  Save before spending
•  Invest early
•  Learn continuously
•  Avoid impulse buying
Conclusion
Financial freedom starts with 
financial awareness.
Small steps today = Big security 
tomorrow
Thank You