Invest In Financial Literacy


A concrete foundation in financial fundamentals makes such a great transformation in the quality of life for any individual and any nation.

Some may suffer financial shocks and losses because they do not realize that our financial markets can go down as well as up.

Numerous studies and surveys done in US show that many young adults fail to comprehend the financial basics.

We, Malaysian also facing the same problem – faces a financial literacy crisis. We need to learn what questions to ask before investing, how to evaluate financial products and professionals, and how to protect themselves in the marketplace.

A well-educated investor provides the best defence and offense against securities fraud.

We also need to learn the mechanics and benefits of financial planning.

It is a logical act when few of us develop financial plans to save for our important financial goals, such as retirement or our children’s educations. Yet those who do develop a plan, regardless of income level, consistently save more.

From Malaysian Department of Insolvency show that there are 41 individuals declared bankrupt every day!

The main causes for declaring these individuals bankrupt are, hire purchase, 26%, personal loan, 21%, housing loan, 14% and others such as business loan, corporate guarantee

Many bankruptcies can be avoided by practicing good money management. For example, avoid impulse spending, don’t use a credit card unless you have the cash to pay it off, tear up credit card offers you receive in the mail, stick to a realistic budget, don’t buy more house than you can comfortably afford, make sure you’re adequately covered by insurance (medical, homeowners, auto), don’t make speculative or high-risk investments and don’t incur joint debt with others who have questionable financial habits.

The good news is that education can help, and we want to be educated.

Ongoing educational effort aims to motivate individuals to learn how to save and invest wisely promote and execute continuously.

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