Digital Trainings for Financial Health

Financial Health, like physical health, is essential for living a happy and successful life. Building a strong financial foundation does more than relieve immediate stress; it also creates the groundwork for a stable and healthy financial future.

There is no single parameter that can be used to determine your financial health however those who are in good financial health will pay special attention to debt, credit, savings, insurance and retirement planning.

Financial health can be defined as the state of one’s own financial affairs and your financial health is influenced by all of your financial activities and decisions.

Did you know that only one third of adults understand the basic financial concepts in the world? Surprisingly, 4 in 7 Americans are financially illiterate while only 24% of millennials can understand the basic financial topics. Similarly, only 27% adults and 16.7% teenagers are financially literate in India. even though Sri Lanka consists of a literacy rate of over 90%, it's financially literacy rate is below 30%. overall, over 3.5 billion adults, most in developing nations lack knowledge and understanding on basic financial concepts in the world.

(Reference - Financial Literacy statistics in 2021 )

Another study conducted in 2017 by Career Builder confirmed that 78% of Americans live paycheck to paycheck which means nearly 4 in 5 households are unable to cover their bills after an unexpected job loss.

Financial health is not a static metric. It will fluctuate with one’s assets and liquidity as well as the prices of goods and services. An individual’s salary may remain constant however the cost of transportation, education and food may increase. A constant stream of income, little fluctuations in spending or expenses, good returns on investments and increasing cash balance are some hallmarks of good financial health.

If more money is spent on things that don’t add value to the overall stability of the business and prospective growth, it may eventually lead to a downtown leading to creating difficulties in paying for the basic expenses such as employee salaries and electricity.

For many, their monthly spending exceeds their income. That is, many individuals face the basic problem of having an income that is insufficient to cover their monthly expenses. Setting a monthly budget that categorizes expenses to reduce excessive spending is the foundation to overcome this issue. Carrying a credit card balance with substantial interest fees every month is another issue faced by many.

However, these financial troubles can be overcome if you know where you stand by understanding your current financial status. Budget is one of the most effective tools in fighting against your financial troubles and for better financial management. Setting and achieving long term financial objectives is also a part of being financially healthy.

Financial literacy is critical to have a better position with regards to financial health as it provides the knowledge and skills necessary to efficiently manage your finances. In the absence of the same, your actions and decisions regarding savings and investments would be without a solid foundation. it will also assist you in better comprehending financial concepts and enabling you to manage your funds effectively thus reaching financial security.

Thereby, lack of financial literacy can create number of pitfalls including poor spending decisions, accumulation of unsustainable debt burdens and lack of long-term preparation. This can result in bankruptcy, poor credit and many other negative consequences. Concurrently, the covid19 pandemic and economic crises highlights the need for people to focus more and get the right education on financial health and stability.

DgMentor platform digitizes all kinds of training including financial health and financial literacy . DgMentor facilitates financial skills training and capacity building. Our goal is to train and empower participants to achieve their financial independence. DgMentor is a cloud-based SaaS platform which enables organizations to deliver training 100% digitally. For more information please get in touch with us.

Contact us

Whether you have a request, a query, or want to work with us, use the form below to get in touch with our team.