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Importance of Financial Literacy

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Having the confidence and capability to manage our finances are essential life attributes to attain and sustain a good quality of life.

Financially-literate individuals make informed financial decisions throughout their life stages, which leads to sustained improvements in their standard of living.

- taken from Malaysia’s National Strategy for Financial Literacy 2019- 2023 (National Strategy)

Achieving Financial Freedom

Gaining financial freedom should be the dream of every individual. Let’s look at the 3 steps to achieve financial freedom:

Financial Education

The first step to achieving financial freedom is to improve your understanding and to make the best financial decisions.

Financial Literacy

The second step is to empower yourself with the awareness, knowledge, skills, attitudes and behaviour needed to make wise financial decisions.

Financial Well-Being

We achieve the third step when we live a meaningful, content and sustainable life, free from constant financial worries and able to withstand any unexpected changes in life situations without experiencing financial burden.

Source: Malaysia’s National Strategy for Financial Literacy 2019- 2023 (National Strategy)

What is the importance of financial freedom?

6 individuals from various backgrounds share “Financial literacy and financial freedom are important to me because…”

... I can make financial decisions for myself and my family wisely, responsibly and effectively while contributing productively to the economic development of our beloved country.

... it gives me more time and peace to do activities I enjoy such as travelling to other countries. Most importantly, financial freedom allows me to spend quality time with my family.

... I want to know the future of my children and family is taken care of if anything should happen to me.

.... it gives me clarity to pursue my life ambitions without being overwhelmed by financial difficulties.

...we do not have to worry about waiting for our monthly salary for survival. It will have an impact on our quality of life. The goal of financial freedom must be instilled in us and even our children through the concept of savings and debt avoidance.

... there can only be one master, money or me.

What is the importance of financial freedom to you?

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How are Sustainable Development Goals (SDGs) related to financial literacy?

Improving your own financial knowledge and skills can also contribute to us achieving the United Nations’ Sustainable Development Goals (SDGs).

Imagine the global impact you can make by starting with conquering your personal finance!

SDG 1:

No Poverty

The level of financial knowledge of a society is the beginning to end poverty and build an inclusive financial system.

SDG 2:

Zero Hunger

The economy of a country as a result of strong individual finances is an important step to end hunger, achieve better food and nutrition security and promote sustainable agriculture.

SDG 3:

Good Health and Well-being

Good financial development is the first step towards a more comfortable life, where you can pay more attention to healthy and prosperous living habits and get the protection you need.

SDG 4:

Quality Education

A strong financial standing for the community can ensure comprehensive education as well as promote lifelong learning opportunities for all.

SDG 5:

Gender Equality

Gender equality and initiatives that empower all women are synonymous with countries with stronger economic conditions.

SDG 6:

Clean Water and Sanitation

Strong financial management among individuals can further ensure that the country reaches and manages water resources sustainably and provides sanitation to all.

SDG 8:

Decent Work and Economic Growth

The level of financial literacy of an individual builds a society that can promote sustainable and comprehensive economic development, a dignified and productive job for all.

SDG 10:

Reduce Inequalities

Individuals and communities that control finances as a whole can reduce income inequality within the country.