Financial Literacy

Money doesn’t grow on trees. So where is your cash right now? I mean truly consider it. Cash isn't exactly what your folks give you when you do your errands and it's not something to mess with. Cash resembles a mind boggling system of streets, one wrong turn and you could wind up in a deep trench. So how do you avoid falling in a deep pit? Don’t worry that’s why I’m here as a financial consultant. So, don’t stress I will provide you with top methods to save your money and life.

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Financial literacy is simply about being knowledgeable. It means that you understand fundamental facts about money, such as the value of cash coins or bills. You also grasp standards and routine practices, such as the fact modern people generally pay

Understanding basic money management skills such as living within a budget and handling credit and debt is very important for students. Having little or no knowledge regarding financial management can affect students in many different aspects of their life. It can affect their academic performance, mental and physical well-being, and even their ability to find employment after graduation (Bodvarsson & Walker, 2004; Lyons, 2003, 2004).

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Sandra has sent us an email regarding a problem, here is her scenario. Sandra is a 17 year old and is needing to set aside and purchase a car when she turns 18. She right now has $3760 in reserve funds, be that as it may, is searching for approaches to contribute her cash and help it develop. She will be willing to take on some risks in order to grow her finances quickly, yet does not have any desire to lose every last bit of her cash because of uninformed decisions.

As your finest financial consultant, I recommend to Sandra and anyone else who is willing to save up and buy a car that they should go for short-term investments. The perfect top two methods are a savings account and term

¨ You earn a rate of return that's usually higher than a regular transaction account which is a profit to Sandra for her scenario.

¨ The interest rate will not change over the term you select. Again another profit for Sandra.

The benefits of savings account:

¨ Take advantage of compound interest, with no or very low risk, so Sandra can’t really lose her money.

¨ Allows easy access to money in the event of an emergency

¨ A variety of transaction methods are available including online, over the phone, ATMs or in branches, since there is a wide range of transaction accounts Sandra can reach her money within pretty much anywhere.

Downsides of Deposits:

¨ If you wish to access your money before it matures, a penalty is likely to apply.

¨ They may be less flexible and provide a smaller return than other comparable products. For example, bank online savings accounts (which are just as safe) can offer returns that are sometimes higher than those of term deposits. The fact that the bank online savings account is safe is a positive itself. Downsides of Savings:

¨ Interest rates are generally low and may not even keep up with