Why Do People Die With Unclaimed Money in The Bank?
In This Review
Do you have a love affair with money? Enough to live with it in your bank account?
Strange question, I know. I’m asking this because there are many people who have large amounts of money in their banks.
The money they’ve worked hard for, money they have cut ways to conserve, and money they do not get to spend.
Who is This Money Belonging to?
A lot are dead Many others could not have any descendants.
What is the reason they save such a large amount of money if they knew they had no option that they could use it or transfer it on to the next generation? A survey revealed that the majority of people save money or create assets, and they may even retire. What is the reason they do this?
For unexpected costs, 40 percent of people who took part.
Legacy has been mentioned by many, while others claimed that having money in the bank made them feel more comfortable. Some said they were afraid that they could have to pay for their expenses and lose money when they began spending.
20% of them said they don’t want to spend money, even after retirement, as money once spent is not refundable.
This is a Question That is Not Very Popular, Why Earn Money if it Isn’t Used to Use it?
What if someone had told you that you could save money without spending too much?
Let’s use India as a case study.
India is a country in which at most 75 percent of the population are educated, however only 22 percent population is financially educated, meaning that 24 percent of Indian adults are aware of the basics of saving money, investing, and budgeting.
50 percent of Indian save between 0 and 20 percent of their salary Then there is a large number of Indian contributing to 18,000 crore or more rupees that are unused in banks because they have saved too much and then dying of cash in the bank.
We’re either spending too much or we are not saving enough.
We’re not sure how to manage our money better, and the solution lies within the classrooms of our schools.
In class 8 we learn how to calculate the cost prices and sales prices. we learn to solve questions such as this one and how to calculate interest simply by multiplying P with R, and T, then dividing the sum by 100. This adds up to our financial understanding.
We have theories but not practical applications, we’re taught to calculate, but we are not taught how to make the right decisions regarding money issues. The financial literacy status in India might witness a dramatic change soon according to this article.
Analyzing Financial Literacy
We receive calls from money-related companies every day, how many times each day do we compute the size of a triangle, or the value of x, no pun intended.
At the present, in Maharashtra, just 17 percent of the population is financially educated, with 32 percent in Delhi and 21 percent in West Bengal then you have Chhattisgarh Pradesh, Assam, Bihar, Gujarat, Sikkim, and Nagaland and 13% of the population lives in Punjab.
Overall, the financial literacy in India is 24%.
The rate of financial literacy in China is as low, as the rate of 28%.
Russia is 38 percent, Brazil 35%, South Africa 42%, and Brits is an absolute mess in terms of financial literacy. Developed countries aren’t any better off.
38 percent of U.S households are in credit card debts, and 33 percent of American Adults have saved zero dollars for retirement. The absence of financial literacy is a global issue.
The majority of us are forced to turn to relatives and friends to solve issues regarding personal finances, but many of us don’t know anyone who is knowledgeable about the subject of finance. What can we do to change the problem? The answer is in the classrooms of our schools It’s in these classrooms that we need to start discussing finances We must incorporate financial literacy into the curriculum of schools It will assist students to learn about economics, and comprehend the importance of loans, interest, and investing and budgeting.
Many students today take high-interest loans to finance their college. They spend a large portion of their earnings paying off the debt. They fail to save and use credit cards to cover their needs and end up in a vicious cycle of borrowing and paying it back.
The concept of budgeting is a foreign concept to most millennials, even older ones and it’s difficult for many people to adhere to simple steps such as determining income and expenses, calculating them, making realistic goals for saving, and keeping track of them.
A survey revealed that 72 percent of Indians are not aware of the proper amount to put aside or invest to attain financial independence.
76% of respondents agreed that they are in need of to increase in education regarding financial planning 55 percent of young people believe they lack personal finance knowledge that holds them from making progress in their financial lives.
Financial Literacy is a Key Component to Making Those Gains, and it Helps Keep a Good Credit Score.
In many countries, it’s tough to get an apartment to rent even if you don’t have an excellent credit score, employers also consider credit scores.
Financial literacy can increase a person’s standards of living. Estimates suggest that you require at least one million dollars in order to retire if you plan to live for 30 years and not work.
Financial literacy can enable you to make wise investments without the need to be frugal You realize that the key to a happy life is not to spend your money in a random way and it’s a smart investment. If you’re worried about medical expenses in the future consider taking life insurance with medical coverage, frankly, I’m not an expert in finance however I can tell you the opinions of experts that have been shared with me. They advise you to begin investing as early as possible, diversify your portfolio and split your goals into long-term and short-term.
A trip or a new refrigerator could be a good time-bound goal while retiring and buying a home on the hill is the longer-term target, and your child’s college and bequest is a long-term objective.
This is only the beginning of the iceberg in financial literacy. It’s an area that we should take a deep dive into, in the present perfect time to begin.
We’ve all heard tales about covetous victims who have died leaving behind a mountain of family debts, most of them have mortgages on their family homes, and many of their vehicles as well as businesses.
The Solution to Financial Crisis
Financial planning can be a way to avoid this type of crisis and is being done to ensure that countries realize this.
In the United States, 21 states have financial literacy requirements, and New Jersey is the latest.
In Australia, financial education is integrated into the curriculum.
Russia has launched financial literacy programs for students in classes 2-11. However, the two nations that receive the highest bribes in their educational system “India and the United Kingdom” have not yet pushed for compulsory financial literacy programs.
What do you do if looking at us from a nation which does not provide the opportunity to learn about financial literacy in schools?
Visit the internet There are a variety of courses in finance fundamentals and a lot of these are completely cost-free, regardless of your age, it’s not too late to get started.
Learn from yourself, teach others, and discover ways you can maximize your savings and secure your future without compromising your goals today.