Financial Literacy : for people newly inducted into the Financial System

Are you sometimes short of cash at the end of the month? Don’t seem to be able to save for the things you really want? You can learn to balance your income with your expenses – and even have some money left over for savings and extras. Let us show you how to manage your incoming and outgoing finances.

Setting priorities: Needs and Want

It is very important to know the difference between your needs and your wants. This will help you set your priorities so that you know where to spend your money.

1.Need: A necessity, something required, something essential for life
2.Want: A desire, something wished for, something non-essential

Using these definitions, a roof over my head is a need. So are clothing, food, tools for work and medications. Watching movies in theater is a want, and so are addictions like chewing paan, smoking and drinking


Most of us have a source of income through our job, business, farming or other work. Many may also be receiving interest income from their investments. Whatever the sources of income, you need to know how to keep track of it and manage it to cover your expenses and save for the future.


It costs money to live. You need to pay for food, clothing, housing, transportation, communication, and a dozen other necessary expenses. Then there are things like vacations, entertainment, children’s education and marriage, gifts for relatives and so on. If you want to reach your goals, there are two things you must do with your expenses:

1. Know what you spend.

2. Reduce unnecessary spending

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