Financial Literacy (ABCs)

What is Financial Literacy

Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. Enhancing financial literacy empowers individuals to make informed decisions, leading to financial stability and growth.

Core Financial Concepts

1. Budgeting and Saving

Creating a budget and saving money is the first step toward achieving financial freedom. So, managing your money wisely starts with two powerful habits: budgeting and saving. These skills help you take control of your finances, avoid debt, and prepare for life’s surprises.​

📋 What is Budgeting?

A budget is a simple plan that shows how much money you:

• Earn

• Spend

• Save

It ensures you do not spend more than you earn and allows you to plan for short- and long-term goals.

Here’s an example of a basic monthly budget:

Remaining money: 500 TJS → Save it, invest it, or use it for emergencies.

✨ Tips for Smart Budgeting

• Track your spending for a month—see where your money goes.

• Use the 50/30/20 rule: 50% needs, 30% wants, 20% savings.

• Set goals: Saving for education? A house? A small business?

• Review your budget monthly and adjust it as your life changes.

🏦 Why is Saving Important?

Saving money protects you from unexpected events like illness, job loss, or emergency repairs. It also helps you reach your dreams.

🌱 Types of Savings

1. Emergency Fund – for unexpected expenses (target: 3–6 months of expenses).

2. Short-term Goals – a phone, a trip, or home repairs.

3. Long-term goals – education, home purchase, retirement.

Even 50 TJS a month is a good start—small steps grow over time.

📌 Take Action

• Open a savings account with a bank or microfinance institution.

• Set a monthly automatic transfer to your savings.

• Use our Budget Calculator to get started.

🧠 Did You Know?

“People who budget and save regularly are more likely to achieve financial stability and avoid debt traps.”

2. Banking Basics

🏦 What is a Bank?

Banking is essential for managing money. It involves placing your money in secure institutions where you can:

• Deposit your earnings.

• Withdraw cash as needed.

• Transfer money to others.

• Save and earn interest on deposits.

📋 Why Banking Matters:

• Safety: Funds in regulated banks are protected and insured.

• Convenience: Easily pay bills, shop, or send money.

• Access to Credit: Build a relationship for future loans or mortgages.

💡 Tips for Managing Your Bank Account:

• Choose a bank that suits your needs—check fees, services, and interest rates.

• Track your bank account through online banking or monthly statements.

• Avoid excessive fees by understanding account minimums and limits.

• Use online banking for easy access and monitoring.

3. Credit and Loans​

4. Insurance Fundamentals​

5. Investment Principles