ATTITUDE AND FINANCIAL LITERACY

THE RELATIONSHIP BETWEEN FINANCIAL LITERACY AND ATTITUDE 

Attitude and financial literacy are interconnected and influence each other in different aspects.

Let's see how attitude Influences Financial Literacy
✨Motivation. A positive attitude towards finances motivates individuals to learn about personal finance, budgeting, and investment.

✨Engagement. A growth mindset and enthusiasm for learning enable individuals to engage more effectively with financial education resources such as written articles and videos.

✨Perseverance. A resilient attitude helps individuals, businesses and companies overcome financial setbacks, such as debt or market fluctuations, and stay committed to their financial goals.

On the other hand, Financial Literacy also Influences Attitude

✨Confidence. Acquiring financial knowledge and skills boosts confidence in managing finances, leading to a more positive attitude and this boosts the financial performance of individuals, businesses and companies.

✨Reduced stress. Understanding personal finance concepts and having a plan reduces financial stress and anxiety, contributing to a more optimistic attitude.
How?. When you understand financial concepts you make informed financial decisions which reduces stress.

✨Empowerment. Financial literacy empowers individuals to make informed decisions, take control of their finances, and develop a sense of autonomy, leading to a more positive attitude.

Attitude and financial behavior are like husband and wife 😁, it's a team of two in that in the absence of the other one misbehaves. Now here comes a question,
How do you rate the relationship of your financial literacy and behavior?

Comments

Post a Comment

Popular posts from this blog

HOW MANY HOURS DO YOU WORK IN A WEEK

Longer Working Hours Recently a lot of debate has been going on about working 70 or 90 hours a week. Just like finance, work ethics cannot be same for everyone.  If you’re building a business, yes, you can and may want to work for such hours. When one works independently they have to put in the extra hours. Even weekends become work-days. Also, working for oneself has a different level of satisfaction. But eventually work hours should fall — efficiency should trump long hours. For someone in a job such long hours, in my opinion, are illogical. Who has the will or desire to work in this manner for someone else? Longer hours may reduce productivity. Unhappy employees can never be good for an employer. Also, if a person is working for someone else they need and deserve adequate family and social time.  I may be wrong but this is how I see the matter. If I link this to financial planning, the core motive of financial management is to reach a stage where one can cut working hours y...
Read more

FINANCIAL EDUCATION

Financial education is the process of acquiring knowledge and skills that enable individuals to make informed and effective decisions about their financial resources. Its relevance can be understood through several key points: Empowerment. Financial education empowers individuals to take control of their financial futures. It provides the tools needed to budget, save, and invest wisely. Budgeting and Saving. Understanding how to create and maintain a budget is crucial for managing expenses and saving for future goals. Financial education teaches individuals to prioritize spending and build savings. Debt Management. Many people struggle with debt, and financial education helps them understand how to manage and reduce it. Knowledge of interest rates, credit scores, and repayment strategies is vital. Investing Knowledge. A foundational understanding of investing can lead to wealth accumulation. Financial education covers topics like stocks, bonds, mutual funds, and retirement accounts, he...
Read more

SAVING AND CREATING ASSETS

Image
Why Savings and Creating Assets is Extremely Important. As Netflix became popular, Blockbuster Video business based on renting out home media was destroyed. The company that had over 84,000 employees in 2004 filed for bankruptcy in 2010. Small rental stores owned by ordinary American families began shutting down at incredible speed. Now think of it as if you were one of those families. In the early 2000s you would’ve felt comfortable with your life. Nothing could go wrong. I mean, everyone needed entertainment, so who would stop renting videotapes or DVDs or CDs? And then suddenly, in a matter of less than 5 years, your earnings shrink because people no more come to your store, they’re taking a Netflix subscription. Before you even have the time to understand what’s happening and act on it, you have to shut down the store. Income gone, expenses and debt still heavy.  We usually talk of how recessions take away jobs. But the magnitude to which technological changes put people out of...
Read more