Financial Literacy- An Essence of Financial Inclusion

Abstract

According to Bernanke "Helping people better understand how to borrow and save wisely and how to build personal wealth is one of the best things we can do to improve the well-being of fam ilies and communities." The frequently overlooked poor also require a range o f financial services like opportunities to earn, to protect the income earned, credit facilities, risk avoiding services like insurance, transfer of money etc. Poor families are not able to obtain wealth prim arily because of two reasons, first being the absence of proper financial services (financial inclusion) and second being the dearth of knowledge of finance (financial illiteracy).