Fin Literacy Pays.Consumers Need Protection, Redressal Too
Businessworld India|14 Jan 2023
FINANCIAL DECISION-MAKING is getting increasingly complex for most Indians. Despite the fact that we make decisions about money every day, less than a tenth in India are equipped with financial knowledge.
Vikas Singh
Fin Literacy Pays.Consumers Need Protection, Redressal Too

Complexity of financial products, changing consumer habits and evolving behaviour is making it more difficult for Indians to manage their finances, and plan for the long term.

Retiral benefits and pension are becoming ‘fluid’, equally complicated, accompanied by an increasing shift of responsibility from employers to employees. There are several products to select from: one more sophisticated, more complicated than the other. Fixed deposits and their interest rates, bonds, and yields, etc. are dynamic and difficult to understand. Similarly, ‘insuring’ life, vehicle or home is highly intricate. Most go blind. One needs to be a genius to understand mutual funds (MF).

Financial Literacy Not a Sideshow. Key to Wealth, Wellness & Security 

Most, including the educated, fail to make judicious financial decisions. As a result, financial decision-making is getting more onerous. It’s anxiety-inducing, even stressful. The lack of financial understanding may explain why many Indians struggle with saving and investing, and underscores why the more vulnerable are in a perpetual debt trap.

A Crux study across 22,000 participants highlights ubiquitous financial ‘illiteracy’. The study measured the awareness and knowledge of different financial instruments, and the features. Only a tenth managed to score a ‘pass’; some demographic groups (women, less educated), score even lower. Only a miniscule percentage understand and possess the ability to develop a long-term financial plan. There is widespread financial illiteracy even in more well-to-do neighbourhoods, clearly dispelling the belief that education is corelated to financial knowledge.

هذه القصة مأخوذة من طبعة 14 Jan 2023 من Businessworld India.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة 14 Jan 2023 من Businessworld India.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من BUSINESSWORLD INDIA مشاهدة الكل
MEMORIES & IMPRESSIONS
BW Businessworld

MEMORIES & IMPRESSIONS

Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.

time-read
3 mins  |
October 19, 2024
The Robotaxi Market
BW Businessworld

The Robotaxi Market

The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.

time-read
1 min  |
October 19, 2024
And the Nobel Prize Goes to AI
BW Businessworld

And the Nobel Prize Goes to AI

The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.

time-read
1 min  |
October 19, 2024
Ola Electrified
BW Businessworld

Ola Electrified

Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.

time-read
1 min  |
October 19, 2024
Sharp Slide in Industrial Output on Eve of Deepavali
BW Businessworld

Sharp Slide in Industrial Output on Eve of Deepavali

India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.

time-read
1 min  |
October 19, 2024
Heralding the Solar Era with Sustainable Electrification
BW Businessworld

Heralding the Solar Era with Sustainable Electrification

RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more

time-read
2 mins  |
October 19, 2024
A WELL-GREASED MACHINE
BW Businessworld

A WELL-GREASED MACHINE

The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar

time-read
4 mins  |
October 19, 2024
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
BW Businessworld

DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH

For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh

time-read
7 mins  |
October 19, 2024
Disruption Ahead: Beyond Organisation Charts and Structures
BW Businessworld

Disruption Ahead: Beyond Organisation Charts and Structures

ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.

time-read
3 mins  |
October 19, 2024
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
BW Businessworld

Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment

We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.

time-read
2 mins  |
October 19, 2024