homeviews NewsFinancial Literacy for Non Individual Investors A game changer for earning on surplus working capital

Financial Literacy for Non-Individual Investors - A game changer for earning on surplus working capital

Financial Literacy for Non-Individual Investors - A game changer for earning on surplus working capital
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By CNBCTV18.com Contributor Mar 2, 2022 8:05:00 AM IST (Updated)

Financial literacy is one of the key ways to bridge the gap between wealth creation journey and economic growth. The absence of financial literacy will lack a strong foundation in terms of decisions concerning savings and investment for non-individual investors. Understanding what balance sheets and profit and loss statements represent gives a clear picture of the company's financial health and enables better decision making.

Financial Literacy is monumentally more important than money itself. As defined by the Organisation for Economic Co-operation and Development (OECD), financial literacy is not only the knowledge and understanding of financial concepts and risks but also entails skills, motivation, and confidence to apply the knowledge and understanding to improve the financial well-being. It is a well-thought amalgamation of knowledge and behaviour that builds the skill for creating wealth. A lack of understanding of how finances flow in terms of credit, investments etc. form an ever-growing wealth gaps.

Financial literacy is one of the key ways to bridge the gap between wealth creation journey and economic growth. The absence of financial literacy will lack a strong foundation in terms of decisions concerning savings and investment for non-individual investors. A business owner that is financially savvy is more likely to have complete control over their company. Understanding what balance sheets and profit and loss statements represent gives a clear picture of the company's financial health and enables better decision making. A small business owner might not be able to holistically manage financial matters; however, having financial literacy will empower the entrepreneurs to handle part of the company's finances and monetising opportunities for developing a successful company and that’s what Elevo aims to do.
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