Financial literacy linked to Health & Well being, here is how.

Contributed by

Dr.Vipul agarwal 

There are many contributors to mental health problems including, but not limited to: discrimination, childhood neglect or the death of someone close to you.

However, Money is the largest contributor of stress, yet so many people do not understand how money works, or how to make it grow.

Perhaps the reason that there is a lack of Financial Literacy is that Investing can be very complex for the average person to understand.

Data from a large canadian study revealed that the majority of canadian are not aware of financial literacy , yes you read it correctly majority are not aware. The lack of Financial Literacy links directly to the situations that cause mental health problems, such as:

• Social disadvantage, poverty and
• debt Homelessness or inadequate housing.
• Financial pressures also lead indirectly to situations causing mental health problems, such as:
• Drug & alcohol abuse,
• Severe or long term stress,
• A lack of education and confidence

 Financial Literacy should be included early into a child’s education and this can help alleviate some of their stresses and give them hope for a brighter future. Infact the Ontario government mandated Financial Literacy into Ontario’s curriculum. Their students now have a chance to take practical real world classes that will make a real difference in their future. 

People are very busy, and then there are also those who think they are too busy, yet have the time for everything except important life skills.

1 – Get Educated: about Financial Literacy: Take some classes, read some books and watch some videos. A little bit of effort for a lifetime of gains.

2 – Get Organized: Once you’ve done some learning and understand this field, the next step is sitting down, making a budget and creating some financial goals.

3 – Take Action: Whether on your own, or with the help of a Financial Advisor, start achieving your short & long term financial plan.

The current generation of professionals are a highly educated and intellectual community which often lacks financial literacy.

I will take you with me to a ride of managing your finances well!

You need to start managing your investments well and early.

The question arises HOW?

• Investments

1. Mutual funds- with a prediction of Sensex hitting 60,000 by December’ 2021, stock market is a hotspot for investment. all hard working youth who often have a shortage of time to go through all the news and views in the financial world, you don’t have to worry about your stock market investments. All you need is an “expert” to do it for you while you focus on your career.There is a well qualified, highly experienced fund manager there to manage stocks for you. You just have to choose a couple of mutual funds which suit you the best and invest into it. For more insight into how to invest in mutual funds, keep following this space.
2. Stock market- invest a part of your income in the stock market directly too. As it’s difficult for us to spare time to study the market, the best bet is to invest in good blue chip companies as a part of your long term investments. it reduces your risk and multiplies your profit!
3. Real estate-  a part of your income should always be invested in real estate for a long term goal. Whether its a flat or a shop or a piece of land, it’s very likely to give you higher returns in long term.
4. Insurances–

            Always insure the assets most dear to you.

1. Health insurance–  As the costs of quality healthcare goes up and up, with new advances coming up making it possible to treat even the most complex diseases, finances should not turn up to be a hindrance in availing quality treatment for yourself and your family. Insure early to enjoy low premium rates. 
2. Term plans- the trauma of losing a loved one is unbearable in itself but struggling with finances on top of that, makes it an ordeal. Secure a term plan early in life to enjoy low premiums throughout your life. The term cover should be at least 10 times of your annual income. Insure all earning as well as non- earning members of your family.
3. Insure your loans– if you have large loans like education or housing loans, Always insure them. In case of the unfortunate demise of the loanee, family should not be bearing the brunt of repayment of loans.   

Golden rules of investment

1. Do not keep all your eggs in the same basket- always diversify your investments to risk the least and reap maximum benefit.
2. Invest early- The earlier you are, the maximum benefit you reap.
3. You are never late. Jab jago tabhi savera!
4. Invest maximum in yourself- the best investment is the money and time you put in developing yourself, in acquiring new skills, maintaining physical, mental, emotional and social health. Invest in developing relationships, invest in developing a healthy environment around you. No power in world can buy this wealth for themselves, only one who can do this is ‘you’

To conclude Financial Literacy leads to a more educated, confident and happier populace. One that has both higher financial outcomes, and also better mental health. 

            In the upcoming articles, we will go through all the above mentioned aspects in                detail. Keep following this space for regular articles on financial literacy!

Reference :

Meyer M. Is Financial Literacy a Determinant of Health? Patient. 2017 Aug;10(4):381-387. doi: 10.1007/s40271-016-0205-9. PMID: 27817182.

For any queries mail me at vipul.msrmc@gmail.com

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