Consequences of Low Financial Literacy: Don't Let Them Happen! – In meeting our daily and future needs, we cannot be separated from financial matters. Reported from GLN Kemendikbud, "financial literacy is the knowledge and skills to apply an understanding of concepts and risks, skills to be able to make effective decisions in a financial context to improve financial well-being, both individually and socially, and to be able to participate in the community." By understanding financial literacy, people's welfare will also be helped.
However, based on a survey conducted by OJK in 2019, the level of financial literacy of the Indonesian people is still quite low, which is only 38.03%. In fact, financial literacy is one of the drivers of the community's economy. Then, what are the consequences of low financial literacy? Come on, see the explanation from the Whiz Financial App. .
Also Read: What is Financial Literacy? Get to Know Its Benefits!
Due to Low Financial Literacy
Less Mature in Financial Planning
With low financial literacy, we do not know what products and features are provided by financial services. This causes us to not be able to put the functions of the money we have. As a result, financial planning is not effective, financial goals also do not exist. There is also no preparation of funds for emergency matters. Maybe, we don't have enough savings for our daily needs in the future.
Poor Financial Management, Leads to Loss
Low financial literacy makes us unaware of financial service providers, financial applications, products, features, and benefits. As a result, we are too conventional in managing finances. In fact, if we know the financial features, our transaction and investment processes for daily life will be very practical. This ignorance causes money management cannot be maximized, even leading to losses for people who own businesses.
Easily Fooled by Stupid Financial Services
If our financial literacy is low, we cannot know which financial services have been licensed by the OJK and which have not. The consequences of this ignorance are fatal. We can be fooled by trapping services, such as illegal loans or investments. In fact, threats from fraudulent service providers may not hesitate to defame our data and reputation. Once trapped, the losses can be suffocating. Don't forget to report fraudulent financial service elements so that the Indonesian economy continues to run.
Indonesian Economy Disrupted
The low level of public financial literacy also affects the pace of the country's economy. The community, as one of the drivers of the state's economy, must have good financial strength so that the state can continue to run well. The public as users of financial services, with financial service institutions, actually need each other to support a gated economic cycle. If our financial literacy is low, the country can suffer huge losses.
No Life Guarantee Security
With low financial literacy, we do not know about financial products that can guarantee our life, such as insurance and other services. This has an impact when misfortune befalls us, such as an accident or death. Emergency funds and old-age security deposits cannot be obtained with low financial literacy. This causes a high risk of loss from managing our own finances.
Also Read: Early Financial Freedom: How To Do It?
As good citizens, let's improve our financial literacy. That way, our finances will remain well-managed and the country's economy will improve. Come on, improve financial literacy with the Whiz Financial Application!
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