Page 256 - Sanidhya 2025

IMPOR T ANCE OF
IMPORTANCE OF

TION
A
ANCIAL EDUC
FIN
FINANCIAL EDUCATION

In today’s evolving world, the imperative for financial literacy is growing rapidly. Increasingly, individuals are solely
reliant on their monthly paycheques for their sustenance. While many are aware that their salaries are insufficient for
long-term stability, the absence of financial education prevents them from addressing this issue. This clearly highlights
that managing money is no longer a specialised skill—it is now a fundamental necessity. Financially literate individuals
not only achieve a high degree of independence, but also confront and overcome a deeply rooted fear: the fear of
money in any form. To understand how money functions does not require one to become an entrepreneur; it simply
denotes liberation from the cycle of financial dependence.

The first step towards becoming financially literate is learning to master one’s emotions. When it comes to money,
people are often guided more by fear and greed than by logic and awareness. This emotional influence forms a
dangerous combination. Fear prevents individuals from making informed, calculated decisions, while greed leads them
into unsustainable behaviours, such as excessive spending or reckless investments. Managing these emotions, enables
one to identify opportunities with clarity and avoid any potential traps. Equally crucial is the ability to distinguish
between assets and liabilities. Put simply, assets contribute to your income, while liabilities drain it. Accumulating
assets is a decisive move towards financial independence, as people build alternative income streams beyond their
salaried earnings. Cultivating the habit to learn continuously is another key aspect. The financial world is dynamic—
shaped by global events, inflation and shifting markets. Staying informed enhances one’s capacity to respond wisely
and make timely, strategic decisions to maximise .

Moreover, financial education and awareness must be fostered at an early age. Children must be introduced to basic
financial concepts—how money works, how to avoid becoming controlled by it, and how to think logically rather than
emotionally. While these lessons may appear tedious and mundane at first, they are powerful in shaping future
decision-makers who are confident and capable. Ultimately, financial literacy is not merely money management—it is
a means to peace of mind, personal freedom, and a better quality of life. It empowers individuals to take charge of
their futures rather than live with constraints.

ARYAN SINGH
Class X A
CRPF PUBLIC SCHOOL,DWARKA