Banks are our assistants and faithful companions in the management of our funds; their role is irreplaceable in today’s world. The better we know the opportunities and products they offer, the more successful we will be in the management of our money. This advice was given by Monika Georgieva, Regional Manager of UniCredit Bulbank for Sofia East Region, to students from Sofia and the county that participated in the Financial Literacy Day. UniCredit Bulbank gave an opening lecture during the forum organized in partnership with Junior Achievement, NN Bulgaria and Mastercard.
The Global Money Week in Bulgaria began with Financial Literacy Day. This is the closing event of the project FIQ – Financial IQ, realized by Junior Achievement, NN Bulgaria, Mastercard and UniCredit Bulbank.
“Banks give us advice on how to maintain our financial health, they protect us from viruses because they develop their online and mobile banking”, said Monika Georgieva.
She told the students that banks are financial intermediaries between people who have funds to invest and those who do not have but need funds. Banks spare us the inconvenience to carry a large amount of money with us, thus providing us with convenience and safety. “Imagine we are on vacation and we haven't taken money with us - we can withdraw money anywhere we are,” Georgieva pointed out.
Another advantage of banks brought forward by the regional manager of UniCredit Bulbank is that they give us the opportunity to have a new home of our own without waiting for a miracle to happen or saving until we grow old. Monika Georgieva explained that there are various types of loans and they are classified according to their purpose - for the purchase of a home or a car, for repair works, for education, etc. The bank provides funds to the customer and he or she is obliged to return them during a specific period of time against an indicated interest.
Georgieva told the students that banks can even take them for a trip around the world. If we manage our money wisely with various opportunities for investment, after a period of time we will receive a larger amount which could be used for anything we like.
There is a difference between saving and investing, Monika Georgieva emphasized. Savings are income that has not been spent and will be used in the future. However, if we put aside money with the idea to receive a larger amount later - now this is investment. Georgieva gave the following example: if we put aside 10 leva every month, in two years’ time we will have 240 leva; but if we invest these 10 leva every month, in two years’ time we will have more than 240 leva.
There are many forms of investments - bank deposits, real estate properties, precious metals, financial instruments - shares, bonds, savings and insurance products. Monika Georgieva pointed out that if we keep our savings in bank deposits for too long, inflation may eat them up.
“The formula for success is to determine the goal and distribute our savings wisely in various instruments, so that we find the balance between profitability and risk. This is called diversification,” she explained to the students.
Additional media information:
Beatris Nikolova, tel +359 (0) 2 9232 528, cfbusjt/ojlpmpwbAvojdsfejuhspvq/ch
Victoria Blajeva, tel +359 (0) 2 9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch