Report on Financial Literacy Session
Date -26-Nov- 2025
Venue – AV Room
Participants -VIII
Resource Person -Ms Puja Sah
Building Financial Literacy Through Early Investment
Financial literacy is an essential life skill, and one of its most important elements is understanding the value of investing early. In today’s world, financial stability cannot be ensured by earning alone; instead, individuals must learn how to grow their money strategically. Investing at a young age provides a powerful advantage by allowing individuals to build wealth gradually, secure their long-term future, and develop disciplined financial habits. Early investing taps into the extraordinary power of compound interest, where money grows not only on the initial amount invested but also on the accumulated returns. As a result, even small and consistent contributions made early in life can snowball into substantial wealth, giving early investors a significant head start compared to those who delay. As Warren Buffett famously said, “Someone is sitting in the shade today because someone planted a tree a long time ago,” emphasizing the importance of starting early.
To reinforce this concept, a video was shown to students comparing two individuals—one who starts investing early in life and another who begins much later. The video clearly demonstrates how the early investor’s steady contributions benefit from decades of compound growth, leading to dramatically larger returns over time. In contrast, the late starter, despite contributing more money overall, is unable to match the final returns of the early investor. This powerful example highlights the importance of beginning early and shows that time in the market is more valuable than attempts to perfectly time investments.
Choosing the right investment options is essential for successful early investing. Stocks offer high returns but come with higher risk, while bonds provide more stable, low-risk income. Blue-chip funds invest in strong, reliable companies and offer a balanced mix of growth and security. Index funds are ideal for beginners because they provide diversification, follow market performance, and require little management. Fixed deposits (FDs) remain a safe option for risk-averse individuals, though they offer lower returns. Overall, starting early and selecting suitable investments helps individuals build long-term wealth, financial stability, and a more secure financial future.
