“We were not taught financial literacy in school. It takes a lot of work & time to change your thinking and to become financially literate” Robert Kiyosaki.
We all sent our children to school & colleges to learn new things which make them better as per today’s scenario. But we never try to go through what they are learning; are they just mugging up with the book & notes or going through any new skills, will they be able to handle any situation which demands any special skill, in Indian we generally pamper our children while they are attending school till 12th standard and then, later on, we guide them to colleges there also we help them in every aspect, like pocket money, clothing, etc.
“A normal college graduate spent 16 years gaining skills that will help them command a higher salary; yet little or no time is spent helping them save, invest, and grow their money.”
In the Indian educational system, we will find all kinds of course curriculum with lots of books and references, but we never found any sort of practical training for it as in the educational system we mainly focus on marks & grades, not on skills & talents.
One of the major things which we miss in the educational system is the knowledge of Financial Literacy, Basically, it is an ability to understand and effectively use various financial skills, including personal financial management, budgeting & investing. The lack of these skills is termed financial illiteracy.
Benefit of Financial Literacy
The main benefit of financial literacy is that it empowers us to make smart financial decisions. It provides the knowledge and skills we need to manage money effectively budgeting, saving, borrowing, and investing. This means that we’re better equipped to reach our financial goals and achieve financial stability.
Why Financial Literacy is Important?
Financial literacy is important because it equips us with the knowledge & skills we need to manage money effectively. Without it, our financial decisions and the actions we take- or don’t take- lack a solid foundation for success.
In Indian families decisions regarding investments & savings are generally done by senior members of the family, who are actually following the same old pattern for the same, which is not suitable as per the current demands. This is one of the major reasons why much young age person lack starting there at the early age of their job.
How to Create Awareness
Organizing financial literacy drives in colleges and schools with live practical case studies & situation analysis so that they actually learn and understand about it.
Making them understand about this will help them in the early days of the job, which actually tries to control their spent over earning habits. Organizing games & quiz contest which make them take real and practical decisions for the same.