It should go without saying that all members of a society should have access to basic financial services and education regardless of race, gender, how much money they earn or how much they have in the bank. Unfortunately, not everyone has the same opportunities to learn what they need to know, and some don’t have the same access to affordable financial products, such as checking accounts, savings accounts, and loans.
For those who are financially underprivileged, loans, credit cards, and bank accounts may be out of reach, particularly for people who haven’t gotten much education about money management. Financial inclusion can help people to make the most of what they have and allows them to be part of their local economies.
Obtaining Needed Financing
When people have access to reliable sources of financial services, they have the opportunity to obtain financing that they might be needing for a variety of different reasons. This can give them a chance to:
- Start a business and increase their income
- Get a mortgage to buy a house
- Get a loan to buy a car or another large purchase
- Feel prepared to deal with unexpected emergencies
Financial inclusion also allows people from widely different backgrounds to have access to student loans and grants to finance a college education. This could possibly open doors to better income and a more secure future.
Safety and Security
Without knowing how to access available financial products, it can be difficult or impossible to keep money safe or secure. If an individual doesn’t have a bank account, they may store cash around their home, in their pockets, or under their floorboards, which raises the risk of having it stolen.
Financial inclusion means people of both sexes and all races and ethnicities can keep their money safe in a financial institution. As people work on building their savings, they can plan ahead for future goals such as making a major purchase or expanding a business.
Access to Financial Education
Without financial inclusion, individuals may stay stuck in a cycle of poverty that may have been passed on from one generation to another. Financial inclusion allows people to have a way to send and receive money, to save money, and to have access to credit.
Financial inclusion and education also have to include the ability to access information that can help people understand more about money and how to manage it. Without education, lenders may take advantage of people who don’t understand when the terms of a loan or other financial product are unreasonable.
Changing Lives with Financial Inclusion
When those that are underprivileged gain access to financial services, including guidance to help them understand how banking products work, they have an opportunity to start to turn their lives around. They may be able to increase their income, save money and make smart decisions about borrowing money.
Dovly aims to provide free information about credit reports and credit repair on our blog in an effort to help people understand the importance of good credit. If you have no credit history or need help improving and repairing your credit, Dovly can help. Get in touch with Dovly and find out how you can take control of your finances today.