Financial Literacy Practice: A Complete Guide to Women’s Empowerment

Abstract

Over the past few years, the concept of financial literacy and financial education has risen in the policies of academicians, social groups, businesspeople, government bodies, organizations, and policymakers. A lot of research has also been done in the past, on the concept of financial education either from policy perception or realistic perception. Many researchers and policymakers strive to offer a conceptual definition of financial literacy through many studies. Financial literacy is acquiring knowledge about financial matters of contention, understanding concepts of saving and spending patterns, using that knowledge to make informed decisions, and assessing available expertise. Financial literacy is important for both men and women so that they may share responsibilities and make the most of their financial independence. Experts feel that knowing about financial literacy and putting it into practice are two completely different things. Financial literacy empowers women to make informed decisions about their finance which results in women being more prepared in the event of an emergency, as financially savvy also sets a positive example for their kids. Financially literate women are more confident in their decision-making abilities. This chapter attempted to present the fundamentals of financial literacy to put into practice in one’s own life to achieve financial wellness. In the research the author found even women with high education and professionals or salaried also lack financial literacy due to their negative financial behavior and financial attitude. The author put effort into steering the conceptual framework of financial literacy toward the real practice of financial literacy. In the research studies, the author considered the four determinants of financial literacy viz., Financial Knowledge, Financial Skills, Financial Attitude, and Financial Behavior which were the fundamentals of practicing financial literacy. Due to the lack of a universal model for financial literacy practice, this paper serves as comprehensive guide to practice financial literacy from scratch level. Irrespective of backgrounds every woman can easily understand how to put financial literacy in practice and empowers women in the professional or personal life.