Overview of FFL Financial Literacy
Financial literacy is the ability & also the knowledge of how to make smart decisions with money. The goal of financial literacy is to help in understanding financial concepts that will help them to manage their money better. It is a life skill that one must grasp for good financial wellbeing. However, financial literacy is the cognitive understanding of financial components and skills such as budgeting, investing, borrowing, taxation, and personal financial management. The absence of such skills is referred to as being financially illiterate.
On the other hand lacking the knowledge of these skills leads to financial illiteracy. Financial illiteracy leads to budget mismatch; higher expenses than income, accumulation of debts, poor credit score, being victims to financial frauds, and other negative consequences.
Financial literacy is important because it equips individuals how to make major financial decisions. Moreover, it increases financial discipline and financial capability. This will lead to major lifestyle changes like saving and investing regularly, managing debts effectively and fulfilling life goals efficiently. Additionally, financial literacy will ensure one’s financial wellbeing and also protect individuals from financial frauds.
Bangladesh has in recent years seen growing adoption of digital financial services. However, more than 62 percent of the households do not have Internet access at home. In rural areas, only 8.7 percent of the poorest 20 percent of households have Internet access at home. Meanwhile, the COVID-19 pandemic has sharpened the need to support the small and micro businesses that even now endure the consequences of reduced demand as they struggle to cover wages, pay suppliers and stay afloat.
By considering these things and also for developing awareness among the different segment of people such as underprivileged people, students, Cottage & Micro entrepreneurs, Farmers, Women, Migrant workers as per guidance of Bangladesh Bank, Financial Inclusion Department through their Financial Literacy Guidelines, First Finance Limited has been arranged programs on “Financial Literacy” in their branches comprising of marginalized people, students, farmers micro entrepreneurs, depositors, customers by emphasizing the theme “To increase awareness among the people about remit expatriate earnings through legal channel”. Besides these they also develop Yearly plan, financial tips & materials for literate the people in different tier of the society.