BY

YAMINI
18981A04I0
ECE D

IMPORTANCE OF FINANCIAL
EDUCATION
 WHERE DOES MONEY COME FROM?

DEFINITELY FROM

NOT
TREES!

 HARD earned –EASILY spent

Do you never have enough money?
Some spending is inevitable and important, while
•
others could be kept in check
• Housing/Utilities • Household Supplies
• Food • Savings
• Transportation • Entertainment
• Retirement • Personal Care Products
• Education • Charitable Donations
• Health Care • Taxes
• Insurance • Miscellaneous
 NO TOO MUCH SPENDING
• It does include Not only spending for daily
needs..but we need them also for some
emergency situations like health related issues
which is not free in our country.
• So SAVING should be done
• Earn or increase it smartly.
• People need to be aware of these..else ..no
matter the figure you earn..u still need to
BORROW.
 Who needs financial education?
• Students Need Basic Financial Literacy Skills
– Budgeting
– Credit and Credit Reports
– Identity Theft
– Taxes
• First time students to graduate students
• Parents and spouses/partners
• Faculty and staff
• Student clubs and organizations
• Everyone!
 Why do we need it?
• The state says we need to!
• The number of foreclosures and
bankruptcies are increasing.
• Unemployment continues to be unstable.
• Credit card use has gotten out of control.

• You have the chance to be smart with your

finances from the very beginning!
 Credit card usage
• Widely used nowadays in the techno greek
world.
• Acc to a Survey
– 74% college students use credit cards for supplies
– 71% college students use credit cards for books
– 24% college students use credit cards for books
– College students double their credit card debt
between freshman and senior year
 Small survey to check if you are smart
enough..
• Do you currently have a
• savings account?
• Do you currently have a
checking account?
• Do you plan on owning or
currently own a car?
• What is a good interest rate
for a car loan?
• Do you plan on owning a
house one day?
• What would you do to
finance your house?
• What is a down payment?
• Can you purchase a house
without a down payment?
• Do you currently have a
credit card or loan?
• What is a co-signer?
• What happens if you have a
co-signer on a loan and you
neglect your payments?
 Got no answer for any one of the
question..?
• You might be fooled!!

Savings investments Money KNOW interest

account • Stocks market rates
• Writing a • Shares accounts
cheque • Chits
• Loan or Mutual funds
mortgage • No frill
accounts
• Timely deposits
Bonds
 Why is Financial Literacy Important?

• Nations like the America owe more debt on their student loans than they
do on their credit cards.
• We spend more than they earn, the time to save is now.
• Students who default on their student loans, damage their credit scores
which negatively affects employment opportunities and lower loan rates.
• To sustain financial well being of individuals and their families.
• Enable individuals to make informed financial decisions and plan for
unexpected financial hardships.
• Learn how to build a budget that works for you, to ensure your goals and
dreams are attainable.
• Take control of your debt before it takes control of you!!!
FINAL THOUGHTS

Taking control of
your finances
instills
empowerment and
prepares you for a
fiscally sound future