Financial Literacy: Guide to Key Terminology & Core Financial Concepts

The ability to meet your short and long-term goals often depends on the wise management of your personal finances. Be it budgeting for unexpected costs or obtaining credit for future plans, having a strong comprehension of finance can help you make better decisions and set you on the path toward stability and economic well-being.

As a leading figure in the money transfer industry, we strongly believe in providing our readers with information that empowers them to make more-informed financial choices. With that in mind, we have put together a comprehensive guide that offers useful personal finance tips while strengthening your overall financial knowledge.

Bank Deposit

Placing funds into a bank account is a crucial component of the global financial ecosystem. Every day, millions of people transfer money to both savings or current accounts, typically for safekeeping or as a form of payment. Yet, despite the sheer volume of bank transfers, they all have their own unique circumstances. In our post, we reveal all the different ways to transfer funds via bank deposit as well as all the necessary requirements and long-term benefits of doing so.

Budgeting

Planning ahead is an essential part of making the most of your money. By calculating your expenses and tracking your overall spending, you can strengthen your financial health and achieve longer-term goals. Regardless of whether you’re looking to save money or discover an app to help you log your purchases, our “How to Budget” post is full of useful advice to help you better manage your finances.

Cash Transfers

Despite the introduction of electronic transfers, apps and mobile wallets, cash is still one of the most popular ways to make payments, especially among largely unbanked communities. Covering all the different methods of sending and receiving cash, our post also contains step-by-step instructions on how to complete cash transfers using either our retail network or app.

Central Banks

From setting interest rates to managing the national currency, central banks are the beating heart of national financial systems, creating stable conditions to drive economies forward. In recent decades, their responsibilities have widened to include economic research and other roles to stimulate growth. As part of our detailed review, learn how the decisions made by central banks can impact your daily life.

Credit

Acting as a financial tool that allows individuals and businesses to borrow money, credit enables people to make purchases beyond their immediate financial reach. Regardless of whether you’re looking to get a mortgage, enhance your career prospects through education or purchase a car, having a good credit score and a positive credit history will ultimately enable you to access loans and other financial products at more attractive rates. Using our guide, uncover how you can start to build a good credit score from scratch.

Financial Inclusion

Bringing those who are unbanked into the financial system is a key step in taking individuals out of poverty. Globally, more than a billion adults are unbanked, meaning they are fundamentally underserved when it comes to channeling savings and accessing credit and other financial services. Learn more about the importance of Financial Inclusion, including the key benefits of having access to credit, savings, insurance and investment products in our post.

International Transfer Codes

While you may have seen bank transfer codes before, do you know what those numbers mean? Varying in length, these codes facilitate the movement of money across the globe. Featuring an in-depth focus on both SWIFT and IBAN codes as well as an alternative cross-border money transfer option, our guide to international transfer codes contains plenty of intriguing insights.

Investing & Compounding

Due to inflation, money tends to lose value over time. One way to retain that value is to invest funds into stocks, bonds or into assets like real estate with the view to witnessing positive returns in the future. These returns can then be compounded, the process of reinvesting the earnings from those investments to generate even stronger returns. As a key component in planning for financial independence, discover how investing and compounding your earnings can help you accumulate wealth.

Microfinance

First developed in the 1970s, microfinance refers to the concept of small loans to help individuals grow their businesses, allowing them to reach their full potential. Microfinance has particularly benefited entrepreneurs in low and middle-income countries, providing them with an alternative access to credit. From security features to its wider global impact, learn more about microfinance in our in-depth review.

Mobile Wallets

Since the birth of smartphones, the digital aspect of financial literacy has assumed greater importance. For instance, mobile wallets allow beneficiaries to store funds on their phone which they can use for later purchases. Featuring a detailed explanation on how they operate as well as security settings and their global impact, our deep dive into mobile wallets covers everything you need to know.

Want to learn more?

Financial literacy is just one of the many topics we explore on our blog. Ranging from migration stories to reviews of financial products and tips on living abroad, visit our Using Ria, The World We Share, Tech, Remittances, Life Abroad and Migration sections to discover the full scope of our content.