The significance of finance in understanding the world and living a fulfilling life.

The significance of finance is often acknowledged more during times of crisis than in peaceful times.

Finance is crucial for various aspects of life, including personal and business financial management, as well as staying informed through financial news. It's essential to be financially literate to avoid risks and gain a better understanding of the world. During recent events such as the pandemic and banking crisis, it has become even more critical to have a financial education. An important question that arises is whether financially educated individuals can navigate adverse economic and financial conditions.

Financial literacy is a crucial tool for successfully navigating the world of finance.

Financial literacy is essential for effectively managing personal finances, and it all boils down to two fundamental principles: saving and investing. The rule of paying yourself first prioritizes your financial well-being, enabling you to invest in yourself and take the first step towards financial freedom. Avoiding bad debt and creating an emergency fund are crucial to making the right financial choices and avoiding unnecessary risks.

In today's global financial context, having a savings buffer that covers three to six months of expenses is considered a good rule of thumb. Being financially savvy helps you manage funds effectively and stay calm during crises, avoiding panic that often stems from misleading news reports. Businesses and institutions' financial decisions have a direct impact on individuals, making it important to understand objective parameters and manage risks to avoid financial losses, as exemplified by the 2008 crisis that resulted from people investing in risky assets without proper financial knowledge. Ultimately, being financially literate is essential for living peacefully and securing your financial future.

Financial literacy helps people make informed decisions and avoid panic while reading news.

Without financial literacy, even simple tasks like reading everyday news become difficult as it becomes harder to understand. A practical example is the case of Silicon Valley Bank and how news contributed to changing people's perceptions. During the pandemic, the fintech industry witnessed impressive growth, and Silicon Valley Bank received large deposits, which it invested in US Treasury Bonds. However, the bank invested these funds in long-term bonds, which caused concern among some individuals.