Financially Literacy for Young India
Updated: Jun 16, 2022
As a human, we are habitual of not listening to our elders. At the same time, we are inherited to copying our elders. In my opinion, if you want to imbibe any habit into your loved ones, you have to do it by yourselves in front of them so that they can copy that.
Financial literacy is one of the topics that are nearly never talked about. The recent online Financial Literacy Championship, conducted by the Streak, reveals that only 16.7% of the Indian school students could score average on the quiz.
I was shocked by looking at the data and was willing to find out why. One of the most crucial reasons behind the low financial literacy in India is that our parents and teachers are not open about it. We are not allowed to talk about three key topics: intellectuality, sex, and money. Also, these are the ones that are necessary to spread awareness among youngsters.
Coming back to our topic, money. When youngsters are inculcated mindfully on financial literacy, they know how to manage expenses on daily "chips", they can figure out how to save for their favourite "snack".
“Financial literacy is the ability to make informed judgments and to make effective decisions regarding the use and management of money.”
Such mindful learnings will help them plan their finances and establish a sense of financial stability among their following generations.
Let's understand some issues that can be resolved by financial literacy;
Accessibility of assets
In today's generation, financial assets are easily accessible, some investment of time and money, and you are there. Such a fact increases the chances of choosing the wrong assets for themselves and ending up losing their money.
This is where financial literacy comes into the role, through which you can be aware enough to make informed decisions.
Effect of Influenzas
During the era of digital India, everyone is here financial expert and provides services regarding such. For the sake of advertising themselves, they are giving "Financial Gyan" according to their perception and life experiences.
As we all know, every human is unique in their own way, so as their financial needs. Implementing vague financial advice may not be a good idea. Everyone has unique financial objectives and requirements. We all should invest and pursue financial assets according to that only.
The greed for quick money
There were no such concepts as quick money in our grandparents' time. In today's generation, it is spreading quickly. Everybody wants to be rich in a very short time, and also, some assets promise attractive returns that have the potential to make you rich in a very short period of time. But while considering those assets, our youngsters usually forget to evaluate the risk behind such.
This is where financial literacy can save us. When young ones are already literate enough to invest while considering calculated risks, they will be able to do financial planning well.
Knowing Finance is Cool
Social media is influencing our generation that during our initial earnings, we usually buy pieces of stuff through which we can show our friends off. We purchase things that reflect our high earnings. Out of those friends, 90% of them watch on their social media accounts, and the rest, 10%, know the reality.
This is where the role of financial literacy comes when we know the importance of savings and investments at a young age, we know how to prioritize our expenses and financial objectives.
Here are some valid reasons that show the importance of financial literacy at a young age. At the bottom line of the article, the only fact that can be concluded is that only our decisions and influences can make us either wealthy or financially distressed.
The article's objective is to make you financially aware enough to make informed and logical decisions while spending, earning, and learning, stop you from investing in the wrong assets and refrain you from making inappropriate choices in your life.