Money makes the world go round and indeed it is integral to our lives . But only few understand what it is like to keep money and make money . According to Global Financial Literacy Excellence Center only 33 percent of adults are financially literate and only 30% indians have a basic understanding of finance. The result is people fall victim to financial scams, buy horrible products and lose out on the better returns.
To check if you know basics of finance check out this Quiz
Therefore it is very important to understand why understanding financial instruments becomes so crucial for us.
Inflation-means that the cost of living gets more costlier with time therefore reducing the buying capacity of the money. Therefore in simple terms if we were buying something today at rupees 100 then next year that money 's value would have dropped down further. This is Inflation . Therefore everybody needs to learn investing as it is necessary to beat inflation.
Before understanding how to manage personal finance and which financial instruments to invest in we need to understand one important thing that is Insurance.