FINANCIAL LITERACY: A MOMENTUM TOWARDS FINANCIAL STABILITY IN SOCIETY

The paper examines the importance of the financial literacy for the financial stability in the society. The study focuses on the various magnitude of the financial literacy. The study also examines the impact of the financial literacy on society. It also examines that how financial literacy play a crucial role in taking sound financial decisions by individual. Financial literacy helps individual in proper financial planning as it gives knowledge regarding various financial concepts and techniques to individual. Considering the present situation financial literacy provides financial stability in individual life as it gives knowledge towards habits of saving, investment and financial planning to earn maximum income. Financial inclusion is very broad term as it includes financial literacy and financial education for appropriate financial attitude among individual towards proper financial planning. Financial literacy is the outcome from proper financial education which helps individual to take sound financial decisions. Because of financial literacy an individual got the proper information and sound knowledge about the different financial products and services offered by vary of financial institutions. Therefore, individual person can utilize these financial services in better manner. Financial literacy is crucial to individual to save at present for better future for his retirement. Financial well being of a person is depends on the level of financial literacy he had. Therefore, for sound financial management, financial literacy plays an important role.