Financial Education

The term Financial Education refers to the knowledge and skills that helps an individual to make sound and effective decisions with respect to finance. In simpler words, Financial Education means ability to understand finance.

With Financial Education an individual becomes capable to question the complexities of finance and shape its advantages for one’s own ease.

Financial EducationThe need of Financial Education has been felt in the developed and developing nations alike. Many including government officials, teachers and organizational representatives have shown a keen interest to increase the rate of literacy regarding the finance in general public. It has been recommended to start Financial Education from the school level so that every individual may learn financial planning and management techniques and employ them for personal well being.

The rise in the need of financial education among the retired population has been steep. As many believe that money management on their own terms will prove profitable for them, further it will help them in finding good ways to put their money to a proper use.

Financial Education can bring an immense change in the standards of living of individuals and make them capable so that they are also able to afford the quality products.

In 2003, with the realization of Financial Education’s importance and how it can be used to improve financial conditions across the globe, the Organization for Economic Co-operation and Development (OECD) was established.

In March 2008, Organization for Economic Co-operation and Development (OECD) established the International Gateway for Financial Education (IGFE) which now heads the financial education programs and research worldwide.

Financial Analyst

All businesses have one sole aim that is to make profits. In order to be profitable they take a number of decisions and to make sure that the financial decisions that they have taken translates to profit, they hire an expert known as the Financial Analyst.

Financial AnalystA Financial Analyst is a person who performs financial analysis for external and internal clients as a core part of the job.

Financial Analysts are often employed by mutual and pension funds, hedge funds, security firms, banks, insurance companies and other businesses, helping these companies or their clients make investment decisions.

Financial Analysts employed in commercial lending firms perform balance sheet analysis, examining the audited financial statements and corollary data in order to assess the lending risks.

From education perspective, a Financial Analyst must have a college degree in business, accounting, statistics or finance. Maths, computers, and general analytical skills are the key skills.

Dealing with new people is a part of a Financial Analyst’s job so there has to be confidence, maturity and the ability to work on your own. An analyst must possess good communication skills to effectively explain complex financial ideas.

The average annual salary of a financial analyst can somewhere be around Rs.8,88,000.

There were 2,50,600 financial analyst jobs in the year 2010, mostly working at the head offices of big financial firms.

The growth in employment of financial analysts jobs in the year 2010 have been more than average. In coming years Banks and Mutual Fund Companies will need more financial analysts than any.

Finance Management in India

Financial Management is the science of managing finances of a business to achieve financial goals and thus to minimize losses and maximize profits. Financial Management also covers identifying potential risks and risk management.

Finance Management in IndiaA person who manages finance in a business or industry is called a finance manager. These people are basically trained in accounting the business finance and holds graduate/post graduate or higher qualification with lots of industry experience.

Financial Management is an interdisciplinary approach which comes midway from corporate finance and managerial accounting. A Finance Manager scrutinizes the financial data of the company to determine performance. The post of a Financial Manager often times referred as Manager Finance/Manager Finance and Budget/ Manager Accounts and Finance etc.

Industry experts refer financial management as technique of money management.The starting salary in the private sector is expected to be above 8 lacs per annum and for public sector to be above 5 lacs per annum.

For students interested in this field an undergraduate degree in economics or commerce in necessary. The syllabus is wide and options such as credit management, corporate finance and banking.

The two top Finance Management institutes in India are Institute for Financial Management and Research (IFMR) and National Institute of Financial Management (NIFM).