Financial Literacy

We live in a world where financial decisions are becoming increasingly difficult, and where ways of accessing financial products and services are multiplying rapidly. People need a wide range of skills and knowledge to make informed choices and to manage the risks involved. (A.Lusardi and O. Mitchell. 2009). Question always arise do you really know how to save your money? Gradually, people are in charge of obtaining their own financial well-being after retirement. With the period from defined benefit to defined contribution pensions, today's employees must agree both how much to save and how to assign their retirement prosperity. Financial markets have become more difficult and people are faced with a propagation of new asset products or investment.

Most people with financially literate increase the demand for, and responsible use of, financial services, help to support financial market stability, and contribute to wider economic growth and development. (A. Lusardi and P. Tufano.2009). For example, people who are more financially literate are more likely to understand the importance of saving and to take action in that respect. Better financial literacy could possibly play a positive role in improving the low savings rates. So at time of retirement we still have enough money to leave with it. With this knowledge and understanding of financial literacy people can have other possible financial benefits include the use of financial products to facilitate business transactions for example, through loans to finance capital expansion and letters of credit to expedite exports and imports, better investment decisions, and improved household consumption through the more responsible financing of durable goods, schooling, and investments for retirement. Therefore, being financial literate can help a person life in the future after retirement. They can still get their needs and wants by themselves and not relying to their children or