Financial Literacy

Financial literacy is the knowledge of concepts such as; income, expenditure, banking, savings and investing.

We should always keep reading and updating ourselves on new financial policies and especially when it comes to taxation so the we remain compliant with the law and avoid tax defaults as well as remaining financially survey.

Here are some benefits of financial literacy

1. Gaining independence:- when we know how to manage our finances we get a sense of control over our assets and don't have to rely on other people to do it for us some of which even charge to do so

2. Security :- By not exposing your income and assets to a third party you are sure that possibility of fraud or defaulting in taxes is minimized because you will have your best interest at heart when doing the management by yourself. Also in an instance where you have to get a third party you will be well aware of what they are doing and would be able to pick up on errors or omissions made therefore safeguarding your interest.

3. Informed decisions:- with extensive knowledge on financial management you are able to make wise investments without letting emotions and intuition mislead you this you you stand to get most on your investment, increase your savings by managing your budget properly. Setting goals and accomplishing them best way possible.

4. Compliance by law:- by knowing your income and expenditure you will be in a position to pay all government taxes and other fees required in a timely manner and avoid penalties

Generally being financially literate will help us understand the economic dynamics and therefore adjust our lifestyles and that of our families as well as be able to have a buffer to cushion us Incase of hard times. We would also be able to manage our families assets.