Definition of Financial Education – Part 1
Organization for Economic Co-operation and Development (OECD) has defined
financial education as “the process by which financial consumers/investors improve their understanding of financial products, concepts and risks, and through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks
and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being”.
— The process by which financial consumers/investors improve their understanding of financial products —
Who are financial consumers?
Financial consumers are the country’s inhabitants, who access the financial products. The financial products could be Banking products, Insurance Products, Mutual Fund Products or Stock Market Products.
Each product has its own set of nuances, which have to be adhered to, for a safe and rewarding experience.
The need of the hour is to encourage new entrants to the financial consumer’s ranks. This new comers have to be guided properly to enable them to navigate through the waters of the financial products.