Last Updated on Apr 8, 2020 by James W
Have you ever wished you had the basis of the most important financial concepts? Would you like to know that there are certain aspects that you can make sure of, no matter what? Well, believe it or not, you are not the only one wishing for such a thing. Nowadays, people are feeling the lack of financial literacy at any time, especially as time goes by and they realize how important it is to have at least a sneak peek of knowledge concerning some economic concepts. Still, never is too late to improve your life, as well as your financial resources and well-being. These being said, in case you are looking forward to knowing more concerning the subject, make sure to stick with us and keep an eye onto the following lines in order to discover the ABC of Financial Literacy!
- Bank Deposit
Even though this is a general term most people know of, a bank deposit is considered one of the basis of financial literacy. Starting with the deep level of the notion, a bank deposit is known as a place where a person has his financial resources – money generated through work and payments, as well as bank transfers. They can be taken out from there even in cash or cryptic, through a debit card.
Believe it or not, until the age of 22 (a recent study has concluded this aspect), the vast majority of the population does not think of savings – not even afterwards. Instead, most of them prefer to live the moment and spend all they have in a fast manner. Only when they realise it is better to have some money put aside for black days, do they start to consider savings – and thus, a vast majority of their years are lost in not thinking about the future which, in some cases, is truly tragic. Moreover, bear in mind that savings can be really useful when you are in your teenage years too, since they can be used for investing into your studies – aspect in lack of which might interfere with your way of switching the course of your life.
When it comes to savings, the best way to generate more money out of it is through interest. By this way, you simply place your money into a bank deposit and let them there for a certain period of time. With the percentage taken from the interest, you are able to decipher just how much will you be able to gain from your money – and trust me, in some cases it might be even a beautiful sum. Now, bear in mind that the interest is generated on a specific sum of money, at it comes in percentage. To find out the real sum, you just have to calculate it by multiplying the percentage with the sum. Another important aspect in here ought to be known concerns the fact that the interest is usually per 12 months, which means that you should split the result from the calculus and divide it by 12. Through this method, you will be able to find the result per month, which is again an important piece of information to own and handle forward.
Basically the most common concept from financial literacy the vast majority of people have at least heard of is credit. This term is generally used to show the idea of borrowing money from something – in this case from a bank – in a legal way, by paying them back together with a certain interest per month. By this way, you can obtain a certain sum of money that you need fast and with less effort than expected, since each month from now on a certain sum of money will be taken from your bank account with no problem whatsoever. Moreover, you will be extremely excited to know that you do not have to pay an arm and a leg each month, but a smaller sum yet on a longer period of time. Departing from this point, your life will improve and you will be less worried by all the things that you are up to do – instead, all that you will need to do is to create the perfect schedule which will simply make your life easier – and your dreams come true, no matter what.
Whether you knew this or not, the revenue is the main sum of money which is generated and send to your bank account. Basically, through revenue you can understand salary or any other form of money which enter your accounts, at any time through day or night. These being said, what are you still waiting for? Have you already managed to make up your mind? We are eager to hear more concerning this main subject!