The need for financing occurs when income is lower than expenses. In the first stage, actions to increase income (additional work, borrowing, selling fixed assets, etc.) can be taken. In the second stage, expenses should be reduced. For example, by saving money.
Together with financial institutions, income can be increased and expenses can be reduced. For example, a Credit Legislation Account (KMH) product can be used for immediate needs, a credit card can be used for short-term needs, and a loan product can be used for long-term needs. Loans used in the long term can help reduce expenses.
Methods to Increase Financial Literacy
Individuals who cannot manage their financial transactions correctly due to lack of financial information cause inefficiencies in terms of the country and their own economies with the wrong decisions they make. By conducting regular research and measurements, the most appropriate training programs should be prepared for all segments of society, from the lowest level to the most complex financial products, and special programs should be developed especially for women, children and youth.
Following the recommendations made by the World Bank and the Organization for Economic Development and Cooperation, many countries are working to increase students’ knowledge and awareness levels by adding financial literacy to the education curriculum.
How do I do financial management on my own?
- By planning income sources,
- By managing expenses,
- By saving money,
- By making an investment plan,
- By being prepared for unforeseen adverse events (natural disasters, etc.).
