Tips for Improving Financial Literacy Among Young People in India
by Sayantani Sanyal
October 11, 2021
Financial literacy is one of the most crucial aspects of any individual’s life. Learning and developing financial management skills is an essential skill that will enable the younger generation to effectively develop their wealth and economic assets in the future. This money management practice lays a solid foundation in areas such as saving, spending, and investing in children.
Parents can start with small steps to teach their children how to save and spend effectively. They can start giving pocket money from a young age in order to control their spending and buying habits. Parents can help children understand the cost of things so that they understand the value of money at an early stage. Different games like Monopoly and other trading games can also make them proactive in financial management. Last but not least, they can teach their children to deal with a financial crisis by teaching them to cut small expenses and save money for the bigger ones.
Today, technology has made investing easier with the click of a button. Introducing children to digital finance and teaching them the basics of digital currencies would help them make more informed decisions. In addition, the Indian government has organized several financial literacy strategies and programs.
- Financial Literacy Project: The RBI undertook this project to impart knowledge about central banking and banking concepts to various target groups, including schoolchildren and children.
- NSFE and NCFE: This venture was undertaken by the FSDC to raise awareness of some of the issues that arise such as how to invest, why to invest and how to borrow from banks. The board proposed to make financial literacy an official responsibility of industry stakeholders, such as RBI, SEBI and other financial institutions.
- Insurance material for children: This document is available online in the form of comics and videos. It is formulated by the IRDA (Insurance Regulatory and Development Authority) to explain to children the basics of insurance, its advantages and prospects.
Financial awareness in India is crucial as it will enable its young residents to increase their income from the start of their career and maybe even before. If children are allowed to make their financial decisions at an early stage, in the future they will be economically alert and more independent.
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