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Lack of financial literacy is one of the reasons why we struggle with saving and investing. Hence, many financial literacy campaigns are organized to educate Malaysians on the subject. The most recent event was the launch of Financial Literacy Month 2022 in October by Financial Education Network (FEN). The Financial Education Network (FEN) is an inter-agency grouping co-chaired by Bank Negara Malaysia and Securities Commission Malaysia and with members comprising Ministry of Education, Ministry of Higher Education, Perbadanan Insurans Deposit Malaysia, Employees Provident Fund, Agensi Kaunseling dan Pengurusan Kredit and Permodalan Nasional Berhad.  (source: https://www.fenetwork.my)

Financial literacy is basically the combination of financial, credit and debt management knowledge that guide us in making financially responsible decisions. It is a subject about how to make our money works harder for us, manage and pay off debts, create a budget and understand the many different financial instruments available in the market to help us manage our money better. All these have an impact in our lives as we work to balance our budget, buy a home, save and invest for our children’s education and our retirement planning.


The following trends are the reasons why financial literacy/education is important.

Some of us are falling behind

The level of financial literacy is different among us. There is disparity among different ethnic groups. Disparity due level of education and disparity due to income level. Nonetheless, many in the highly educated and high-income group are as ignorant.

Saving and investment choices are more complex

These products are getting more sophisticated and require a competent level of financial literacy for decision-making. It can impact our choices and ability to buy a home, finance our kids’ educations and save and invest for retirement.


The financial and investing environment are changing due to the advent of technology. Online banking, electronic trading and digital currency, all these are making the financial markets swifter and more volatile. It makes creating, implementing and executing a financial roadmap difficult for those not adequately competent.

In conclusion, financial literacy is important simply because financial responsibility is increasing and getting more complex. Financial literacy allows us to manage our finances effectively. It has a broad implication on our economic health.

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(Information for this article is sourced from www.investopedia.com)