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.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is Leadership Without Hierarchies Possible?
LEADERSHIP IN THE current era is more challenging than ever before.
The Rise and Evolution of Coffee Culture in India
AS A BANGALORE native, South Indian filter ‘Kaapi’ has always been a significant part of our tradition.
The Daily Ground Goes Desi
Success in Tier-2 and Tier-3 cities hinges on several key factors, with one of the most important being the ability to offer high-quality products at an accessible price point
Cracking The Indian Code
TARUN JAIN, CEO of Tim Hortons India believes in creating an experience at cafes by blending global quality, local flavours and affordability
Making Coffee the New Chai in India
Affordable, great-tasting coffee made fast-abCoffee is reshaping how India drinks coffee
Scripting A New Era Of Coffee In India
From a bootstrapped startup to international expansion, NOTHING BEFORE COFFEE is brewing its way to the top by challenging the giants of the coffee industry with innovation, personalisation, and sustainability
"Driven By A Younger Demographic, Coffee Culture Is On The Upswing"
SUNIL D'SOUZA, Managing Director and CEO of Tata Consumer Products, discusses the company's strategic growth in India's booming coffee market, focusing on premiumisation, innovation, and expanding consumer experiences both at home and in cafés, in this exclusive conversation with BW Businessworld's Tarannum Manjul
Fresh Brew, Big Ambitions
From startups to stores, Beanly's Samayesh Khanna and Rahul Jain elevate India's coffee culture by making freshly brewed coffee a daily delight
"On Track To Become India's Top Café Chain"
In an exclusive interview, RAJAT AGRAWAL, CEO of Barista Coffee, shared insights on the company's current market position, expansion strategies, and its response to growing competition
"Ensuring A Seamless Coffee Experience Outside The Cafe Is The Next Big Thing To Watch Out For"
In an exclusive conversation with BW Businessworld's Resham Suhail, Third Wave Coffee CEO RAJAT LUTHRA and its Co-founder AYUSH BATHWAL delve on how they are navigating the competitive landscape, going beyond retail and tapping changing consumer preferences