The Power of Financial Literacy
News Kashmir Analysis
Financial literacy is very much needed for the growth of any country especially in this day and age.
The expert pulse is Financial literacy empowers individuals and households to manage their money effectively, plan for their future, and make informed and responsible financial decisions that lead to financial well-being and makes them aware of their rights as consumers of financial products and services.
As a matter of fact, Financial literacy is the foundation upon which individuals, families, and societies build their economic stability and prosperity. It encompasses the knowledge, skills, and habits necessary to manage financial resources effectively, make informed decisions, and achieve long-term financial goals. In India, where a significant portion of the population lacks access to formal financial services, promoting financial literacy is crucial for inclusive economic growth and development.
We also need to do much about our financial literacy .
A recent survey by the Reserve Bank of India (RBI) revealed that only 27% of Indian adults possess basic financial knowledge, while a staggering 73% lack even a rudimentary understanding of financial concepts. This financial illiteracy has far-reaching consequences, including reckless spending, inadequate saving, and a heightened vulnerability to financial scams and exploitation.
It is heartning to note that Real-Life Examples of Financial Literacy in Action are found in our country .
In the many villages of our great country , a series of pioneering initiatives have empowered local women to take control of their finances through education and training. By learning basic accounting, budgeting, and investment skills, these women have transformed their lives, increased their incomes, and improved their families’ well-being.
Similarly, in the urban metropolis of our country , financial literacy programs have helped thousands of low-income workers develop healthy financial habits, such as saving for emergencies, investing in pension plans, and avoiding predatory lending practices.
Expert pulse is that The Way Forward: Promoting Financial Literacy Across India is much needed.
To address the pressing issue of financial illiteracy, the Indian government, financial institutions, and civil society organizations must collaborate to launch more large-scale financial literacy initiatives. These programs should focus on developing user-friendly educational materials, providing interactive training sessions, and leveraging digital platforms to reach remote and underserved populations.
Many programmes for promoting financial literacy are being launched in recent times which is very heartning .
By prioritizing financial literacy, India can unlock the full potential of its citizens, foster a culture of financial responsibility, and build a more inclusive, stable, and prosperous economy for generations to come.
