India is one of the fastest growing economies of the world and is likely to emerge as one of the world’s largest economies by 2030. The country has been riding on the growth trajectory despite various challenges including natural disasters, corruption, terrorism, caste and communalism. But what is more worrying is that more than half of the Indian population is still not financially literate. India is ranked at the bottom in terms of financial literacy.
This is a worrying trend for a country that is inching towards a cashless economy. Financial literacy is an important factor for economic growth and for the overall development of an economy. It is a common phenomenon in developing economies that the poor remain financially illiterate due to lack of awareness, opportunity, and resources. This leaves them more vulnerable to financial mismanagement especially in a volatile economy. Financial literacy has a direct correlation with the financial health of an individual and the economy.
Financial literacy is a key factor in the development of a country, and India is not an exception. Poverty stricken India is fighting hard to come out of the vicious circle of poverty. For this, it needs to develop financially. And, financial literacy is one of the ways to get out of the poverty trap. In the case of India, financial literacy is a very critical factor to develop financially. Lack of financial literacy may lead to bad financial decisions and make people spend more money than needed. For example, if people don’t know about the importance of savings, then they may end up spending money on unnecessary items and not have enough money for the future.
It is known that India is one of the most populated countries in the world. This makes it difficult to educate its people as there are too many of them. Thus, India ranks 23rd amongst 28 countries when it comes to financial literacy.
Financial literacy means an understanding of how to manage money, savings and investments. It is an essential tool to help people make decisions about money and to live a more secure and prosperous life. There is a strong correlation between financial literacy and household income. Financial literacy can help people make better decisions, help them save more, and help them protect their financial security.
Literacy is defined as the ability to read, write, understand and use information from text. Financial literacy is the ability to read, understand, use and communicate information about personal finance and to manage one’s personal financial resources effectively.
Financial Literacy is a critical factor for India to come out of poverty according to a recent study. The study was conducted by an Indian organization named Pratham. It was found that the financial literacy rate in India is 20% . 80% of the women population of India is financially illiterate. According to an estimate by the World Bank, in India, around 70% of the population is living below the poverty line. And day by day, the gap between rich and poor is increasing.
The reason why financial literacy is not taught in early education is that we don’t want our children to be financially independent. We want them to be dependent on us so that we can use them as an excuse to our parents “see, I have to look after my children, I can’t go out with you”. We don’t want them to be able to stand on their feet and face the world. We don’t want them to know that there is more to life than just getting married, having children and working for us and our parents. We don’t want them to have the courage to say NO to us and to those who are exploiting them.
Productivity has a direct relationship with financial literacy. It is a basic human right and responsibility of every human being to learn and understand the way money works. This is a need of our time. We should all be financially literate. If we are not, we become part of the problem and not the solution. If people have no financial literacy, they have no choice but to be at the mercy of the banking system. They remain dependent on the government, which is not a good place to be in. It is a challenging task for the government to ensure that everyone is financially literate. We do need to put in some extra effort to educate people about the importance of financial literacy. How can we do it? The government and non-profit organizations can work in tandem to spread awareness about financial literacy
India is the largest democracy in the world with the 7th largest economy and a population of over a billion people. The poverty level in India has been the center of debate for many years and the question on whether India can come out of poverty is still a contentious topic. There are many factors that contribute to the high rates of poverty in India, but the biggest reason is that India is one of the most underdeveloped nations in the world. To become a developed nation, India needs to create more jobs for its people. The biggest challenge that India is facing currently is that a majority of its population does not have the skills or the knowledge to gain employment. For India to become a developed nation, it has to focus on financial literacy and job creation.
India has been trying to pull itself out of poverty for decades, and the government has devoted significant resources to the cause, but it is clear that the country is still in dire need of a plan for financial literacy for its people. There are lots of reasons why financial literacy is critical for India. First of all, the economy is one of the fastest growing in the world, and it is expected to be the third biggest by 2030. That’s great news for the country and its people, but it also means that the demand for goods and services will skyrocket. The problem is that India is a country that depends on foreign nations for consumption, so without financial literacy, its people will have a hard time coming up with the money to make purchases.
The present Sri Lankan crisis is the very live and the most compelling example as to how financial illiteracy amongst the citizens can ruin their lives. The Sri Lankans have gone through many of their own crises in the past and their financial literacy levels were never an issue to them. But this time, in the wake of the financial crisis, their financial literacy levels are going to be an issue to them, since they were not prepared for such an unexpected event. Sri Lankans have been in the habit of saving money and gold throughout their lives. They were quite happy at the thought of saving money and living a more contented life. Sri Lankans also had a strong belief in the fact that gold can never be a bad investment. These were all misnomers. Sri Lankans thought that saving money and keeping it in the banks through their lives will safeguard them from any calamities.