Between the age of 5 - 18 education is free, the opportunities to learn, and build your carrier path. Should you fail to take up some of the fundamental education that was provided during that period, you are more likely to struggle later on in life. The ‘Now what?', making it happen.

A Lifetime Financail Growth

Life has a way of throwing the unexpected financial obstacles, detours and potholes in our path, such as repairs to your car or home or loss of job. All of those unplanned things and other financial emergencies can really put a spanner in the works. However, here are some strategies for managing a financial crises:

Establishing an emergency Fund - this can ease the burden in times of difficulties. Save this into a low risk accessible account. We suggest that you set aside at least six months regular living expenses in that account
Insuring yourself - insurance protects your financial assets in times of really big financial disasters. Here are some types of insurances you may consider having:
Disability insurance - did you know that you are more likely, before you attain the age of 65, to miss at least 3 months of work due to disability than you are to die?
Borrowing money - if you must borrow money due to a financial emergency, give careful consideration to the costs and look at all options available to you

The Importance of Financial Literacy

What is financial literacy? (Financial Literacy is not just for the rich, it is for everyone)

Financial literacy has many definitions, the most common definition being having the set of skills, financial principles and knowledge that is needed to allow you to make appropriate financial decisions. For example:

Understanding the key financial products you may need throughout your life, including bank accounts, mortgages, retirement savings plans and basic investments, such as stocks and bonds
Understanding the basic financial concepts, such as compound interest, investment return, risk, diversification credit and debt management
Making good financial choices about saving, spending and managing debt throughout your life, getting an education, starting a job, buying a house, starting a family, getting ready to retire and living out your restful years.

Why is financial literacy so important?

Financial literacy is one of the many core life skills that are required for participating in a forever-changing society. The increased use of technology, market trends, and legislative changes have resulted in more complex financial products options. As a result of all these changes, consumers are required to be more actively involved in managing their finances.

Financial Risks have shifted

Having the knowledge and the appropriate tools that are necessary is the ability to make appropriate decisions in managing personal finances, allowing you to:

Choose financial products that can have impact on your medium to long term financial wellbeing
Respond to economic changes that affect your everyday financial well-being – including events in the general economy, such as the collapse of financial markets

The value of State Pension is reducing, causing defined contribution pension plans to be replaced with defined benefit pension plans. What does this involve?

Risk have shifted to individual
Individuals are exposed to both contribution and investment risk
Consumers are shouldering more of the financial decisions for longevity, credit, health care, lack of money and financial markets
Unemployment and the threat rapid inflation