Financial literacy: The key to economic growth

 

How is financial education the most important stepping stone to full financial inclusion and how does one achieve 100% financial literacy?

 

Take a look at this shocking statistic. According to a SandP survey, more than 75% of Indian adults do not sufficiently understand basic financial concepts. It's even worse when it comes to women. More than 80% of women are financially illiterate.

Is financial education important?

To answer this question, you need to know what financial literacy is. Financial literacy is the ability to understand how money works. It is the art of investing and managing money and the ability to make informed financial decisions. Millions of Indians cannot make sound financial decisions. and the consequences are terrible to imagine.

 

Unscrupulous life insurance agents and other financial service providers cheat financially illiterate people out of their hard-earned money by recommending financial products that are not suitable for them or withholding relevant information.There is a popular term to describe this called a mis-sell.

 

People make the wrong financial decisions and lose years of savings. Loans are taken out without understanding the interest payments and the consequences of a default. they commit suicide when they have economic problems. No Financial Education = No Money for Retirement.Lack of financial literacy is a heavy burden on the nation as spending on financial security soars. This begs the question. How can India become financially literate and achieve full financial inclusion?

 

Now let's move on to the next big step.Financial literacy can be a stepping stone to full financial inclusion. Financial inclusion means that financial services such as banking and insurance are available to all citizens of India at affordable costs. A financially literate person knows the value of financial inclusion and this is the first step. to financial inclusion.

• Financial inclusion consists of having a bank account for saving and investing. A financially literate person understands this and will open a PMJDY savings account to take advantage of life insurance, accident insurance and even overdraft service to protect you from money-hungry lenders.

 

• The government is doing its part to bring financial inclusion to the doorsteps of all citizens. Banco Mitras brings banking services and PMJDY accounts to the doorsteps of citizens in rural inland areas. India Post Payments Bank was established with the main purpose of being financial. Recording. The poor rural citizen has to say YES to financial inclusion and that is only possible with financial education.

• Financial literacy encourages citizens to move from the informal financial system of greedy moneylenders and illegal bogus money to the organized financial system of banking and insurance. .Financially conscious citizens ask questions. How can this financial product help me? Why should I use this financial product that could mean the end of misleading sales in India?

 

• Financial literacy is just as important, if not more so, than financial inclusion. People are learning to save, invest, borrow and spend wisely. A financially literate person does not ask why financial inclusion, but advocates for it. This solves all financial inclusion issues and when the government brings financial services to your home, even better. This is where companies like IndianMoney come in.com, which follows PET, Protect, Empower and Transform, play an important role. They provide holistic financial education and empower even rural citizens to protect themselves from financial fraud and adopt digital transactions, making the task of financial inclusion for governments really easy.

 

India needs to achieve 100 percent financial literacy and what better than educating young minds in school. Our educational curriculum needs serious rethinking.Financial literacy must be taught to both rural and urban students at the school level, and financial concepts are not currently taught even at the class level.

 

• A good way to achieve 100% financial literacy is to educate girls. at a young age empowers women in our society. They in turn teach their children to save and invest and make India a developed nation.

 

• It's a common belief that the rich are financially savvy.It is not true. Financial literacy is important for all citizens and very important for the wealthy financially illiterate to save and protect wealth.

 

• It is the duty and responsibility of every citizen to become financially literate. Take financial literacy into your own hands. Knowledge is the key to financial literacy and nothing beats reading personal finance.The next step would be to understand your finances and make the right financial decisions.

 

• Introducing a practical approach to financial education to promote financial inclusion. Studies have shown that financial education programs that involve service providers and are supported by an appropriate financial product encourage citizens to use that product. Citizens would use this financial product if they felt it suited their needs.

 

• The banks could provide financial education to the leaders of the rural communities, and that knowledge would seep down to the lowest levels of society, reaching all citizens of the region,Nation.

 

• Financial products that meet the needs of low-income people should be introduced and financial education should be provided to encourage citizens to use these products, enter the formal financial sector and enjoy financial inclusion, making India 100% financially literate. .

Be Wise, Get Rich.