Ways to improve financial literacy

The middle class abroad actively invests in securities, is interested in the stock market and the size of dividends, transfers capital to trust management. Is it possible for us to be so immersed in the financial agenda? Quite. How to improve financial literacy and increase income?

Financial literacy is a set of practical and theoretical knowledge and psychological attitudes in the field of human financial behavior, which lead to an increase in well-being and the ability to competently manage personal capital through short-term and long-term planning.

Fundamentals of financial literacy

The value of financial literacy is growing every day. It is based on knowledge that is obvious to every investor:

  • key financial and investment terms and concepts;
  • legislation and current economic and political situation;
  • understanding the principles of building an investment strategy and a basic plan, taking into account income and expenses;
  • the ability to collect and process information about financial activities, etc.

This fundamental base allows you to build a competent approach to working with stock market securities, understand the significance of indicators such as GDP and the reason for the investment attractiveness of cryptocurrency. What will cause skepticism and fear for beginners, for a trained one – interest, a desire to study and try out in practice. It is on this principle that Amir Capital. We are constantly on the lookout for new investment opportunities for our clients.

Levels of financial literacy

How to determine the level of literacy? We offer you to get acquainted with the basic and simple classification of levels from 0 to 3:

  • level 0 – lack of knowledge of the basic principles of working with money;
  • Level 1 – theoretical understanding of key financial and investment concepts;
  • Level 2 – practical use of basic financial investment tools;
  • Level 3 – the full use of financial instruments and the formation of a diversified investment portfolio with liquid assets.

The benefits of personal financial literacy

The sphere of finance and investment frightens many with complex terminology, a heavy post-Soviet legacy in the form of stolen funds, the appearance of a huge number of scammers in the 90s, the devaluation of national currencies and crises. The world is changing. It did not become safe, but became more strictly regulated by law and obeyed the international rules of the game. Most citizens of foreign countries understand from childhood that money should work and generate income.

What are the benefits of financial literacy:

  1. Improve financial well-being.
  2. Understanding how you can wisely use personal capital through short-term and long-term financial planning, control costs and find funds for investment.
  3. Shaping an airbag.
  4. Rejection of imposed and financially disadvantageous banking and insurance services. The ability to recognize the fact of misselling helps to avoid debt burden.
  5. Avoiding internal fears and imposed stereotypes that money is evil and problems.

Financial thinking allows you to see many opportunities and options for basic and additional income.

The risks of financial literacy

Forming a financial mindset is the most difficult thing for novice investors, because they will have to reconsider a lot of internal and sometimes destructive attitudes towards money. To avoid painful disappointments and reduce risks, it is important to responsibly and carefully approach training, discard courses and books of pseudo-gurus and scammers.

Ways to improve financial literacy

The following methods are recommended for investors to improve their financial literacy:

  1. Studying specialized literature in Russian (or any other) and English to understand the investment specifics of the region.
  2. Monitoring of Internet resources dedicated to news monitoring in the field of investments, reviews of financial institutions and companies, analysis of the economic and political agenda, etc..
  3. Attending specialized courses, lectures, thematic events online and offline to broaden your horizons.
  4. Being trained by experienced professionals with a proven track record in the market.
  5. Gain hands-on experience by learning the strengths and weaknesses of various investment platforms, banking and financial services.

Summing up

Improving financial and investment literacy is an ongoing process that requires attention and control. Amir Capital offers its clients the opportunity to improve their level in the field of finance and earn money on their own.

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