Financial Literacy

Understand what financial literacy is and how it can help you.
OPEN FD
Financial Literacy
OPEN FD
3 min
26-December-2025

Financial literacy simply means understanding how money works in real life. It’s about knowing how to earn, save, spend, and invest wisely—without feeling overwhelmed. Just like learning to drive or cook, money management is a life skill that improves with practice.

Being financially literate helps you make confident decisions, avoid common traps, and steadily move towards your goals—whether that’s buying a home, building savings, or planning for retirement.

Many people begin their financial journey with simple, low-risk options like fixed deposits to build confidence before exploring advanced investments. Check FD rates offered by Bajaj Finance and invest now!

What is financial literacy?

Financial literacy means knowing how to manage your money effectively. It includes understanding budgeting, saving, investing, borrowing, and protecting yourself from financial risks.

When you are financially literate, you can:

  • Plan for future goal
  • Make informed investment choices
  • Avoid unnecessary debt and scams

It empowers you to take control of your finances instead of reacting to money problems as they arise.

Also Read: Smart Investment options

Fixed Deposit

  1. Trusted by over 5 lakh customers
  2. Fixed Deposits worth more than Rs. 50,000 crore booked
  3. Rated CRISIL AAA/STABLE and [ICRA]AAA(STABLE)
  4. Up to 0.35% p.a. extra interest offered for senior citizens
  5. Flexible interest payout options available - Monthly, Quarterly, Half-yearly, Annually or at Maturity

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Scope of financial literacy

Financial literacy covers a wide range of everyday money decisions. It goes beyond textbook knowledge and focuses on practical application.

It includes:

  • Understanding banking products like savings accounts, FDs, and loans
  • Building saving habits and emergency funds
  • Managing debt and credit responsibly
  • Planning for long-term goals like education, retirement, or major purchases

Financial literacy also helps you assess risk, compare options, and choose products that match your needs and comfort level.

Safe instruments like AAA/Stable rated Bajaj Finance fixed deposits often act as the foundation of a financially disciplined plan. Open FD account.

Why financial literacy matters

Security
Lack of financial awareness can lead to debt, fraud, or poor decisions. Financial literacy acts as protection against costly mistakes.

Goal achievement
Whether you want to buy a house, retire comfortably, or start a business, financial literacy helps turn goals into actionable plans.

Stress reduction
Money worries are a major cause of stress. Knowing how to manage money brings clarity and peace of mind.

Legacy
When you understand money, you can pass on healthy financial habits to future generations.

Key areas to focus on for building financial literacy

Budgeting
A budget helps track income and expenses so you don’t spend more than you earn.

Saving
An emergency fund is essential to handle unexpected expenses without stress.

Debt management
Borrow wisely, understand interest costs, and avoid unnecessary debt.

Understanding financial products
Each product has different features, costs, and risks. Choosing the right one prevents future regret.

Investing
Investments help money grow over time. Options include fixed deposits, mutual funds, bonds, and equities.

Fixed deposits are often the first investment choice for beginners because of guaranteed returns and clarity. Book a Bajaj Finance FD and earn up to 7.30% p.a. returns.

Fixed deposit variants

Highest Credit Ratings | Trusted with over 1.4 million Deposits | Assured Returns on FD
Recommended

Fixed Deposit - 60 Months

INTEREST RATES UP TO
7.30% p.a.
Invest Online

Fixed Deposit - Senior Citizen

INTEREST RATES UP TO
7.30% p.a.
Invest Online

Fixed Deposit - Age below 60

INTEREST RATES UP TO
6.95% p.a.
Open FD

Fixed Deposit - Minor

INTEREST RATES UP TO
6.95% p.a.
Open FD

Fixed Deposit - HUF

INTEREST RATES UP TO
6.95% p.a.
Open FD

Fixed Deposit - Sole Proprietor

INTEREST RATES UP TO
6.95% p.a.
Open FD

Getting started with financial literacy

Track your spending
Monitor your income and expenses to identify saving opportunities.

Create a budget
Allocate money for essentials, savings, and personal spending.

Set financial goals
Short-term (travel), medium-term (education), and long-term (retirement).

Pay yourself first
Automate savings so consistency becomes effortless.

Tools like FD calculators help estimate returns and plan savings realistically.

Benefits of financial literacy

  • Better decision-making
  • Improved investment outcomes
  • Strong retirement planning
  • Greater resilience during emergencies

Financial literacy helps you stay prepared, not panicked.

Types of Investments

1. Fixed deposits

Fixed deposits offer guaranteed returns over a fixed tenure. You invest a lump sum and receive interest at a predetermined rate.

They are ideal for:

  • Risk-averse investors
  • First-time investors
  • Goal-based savings

Bajaj Finance Fixed Deposits offer attractive returns of up to 7.30% p.a., backed by a AAA/Stable credit rating from CRISIL and ICRA. Open FD.

2. Stocks

Stocks can deliver high returns but involve higher risk. Prices fluctuate based on company and market performance.

3. Bonds

Bonds provide steady income and are generally safer than stocks. They suit conservative investors seeking stability.

4. Mutual funds

Professionally managed investments that offer diversification across assets. Suitable for long-term wealth creation.

5. Exchange-Traded Funds (ETFs)

ETFs track indices or sectors and trade like stocks. They combine diversification with flexibility.

Also Read: What is Real Estate Investment Trust

Conclusion

Financial literacy is not a one-time lesson—it’s a lifelong journey. Starting early, learning continuously, and choosing simple, reliable tools can make a huge difference over time.

Whether you’re just starting out or refining your financial habits, building a strong foundation with safe investments like fixed deposits can help you stay confident, disciplined, and prepared for the future.

Calculate your expected investment returns with the help of our investment calculators

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Sukanya Samriddhi Yojana Calculator

PPF Calculator

Gratuity Calculator

Recurring Deposit Calculator

Provident Fund Calculator

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.