Financial Literacy Essay

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1. Introduction
The Consciousness of the people on financial literacy in decision-making initially becomes inspirations to this essay. Diversification of financial instruments and the complexity of procedure lead to the people realize on crucial role of financial knowledge. The Financial literacy concept is extensively acknowledged as a pivotal element within many areas of life when people begin to enter the modern global market, such as become an entrepreneur, an investor, or an officer. In a broad sense, financial literacy may be believed as a starting point to encounter unpredictable financial problems among the people. Through financial education, people could organize their financial possessions appropriately, such as retirement planning
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Since people have been more aware of financial education planning, financial literacy has been taken as a priority in the financial instrument assessment. Financial literacy is defined as the competence that an individual has to administer, control, and invest her / his money. This defining attributes to the personal’s understanding in effective decision making by utilizing all of their financial ownership. Some theorists, such as Lusardi and Mitchell (2007) claim that financial literacy is an element that is associated with individual achievement in better planning; for illustration, investment for retirement and savings …show more content…
In recent years, the increasing of financial services and financial instruments forces the people to become actively obtain a deep understanding of financial knowledge. Broad spectrum of banking companies, government institution, grass roots consumer and other associated institution have put a major concern in financial literacy issue in order to make a decision more beneficial to their economic welfare. Inadequacy of financial literacy can lead to long-term effect of financial decision, for illustration, ineffective investment in higher education, retirement planning, or health insurance budgetary. In addition, people’s financial behaviors determine their defence to survive in encountering financial

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