Financial literacy a key trend among today’s youth
New Delhi: Young people are increasingly signing up for financial literacy classes, which are taught by India’s leading financial institutions and are fueled by social media influencers who give financial advice but are often not trained to do so.
There was a time when young Indians received financial advice mainly through popular novels such as “Rich Dad, Poor Dad”. Despite the excellent concepts, the text was irrelevant to the Indian reader and the advice was impractical. Career guidance, on the other hand, was out of reach due to the high cost of hiring a financial planner. As a result, the Indian retail investor was mostly absent. It was then.
Today is different. Financial independence and financial freedom have become mainstream in today’s world, thanks to a growing culture that values entrepreneurs and producers of wealth. It is promoted by young people who no longer consider employment as their only source of survival and development. Instead, a growing number of people think their money should work for them.
Change in the way we plan to invest: These young people understand that investing is crucial for creating wealth and are not afraid to try different fads. One example is the huge interest generated by IPOs of new-age startups, the growing clamor for access to cryptocurrencies, and more.
The attraction of social networks: A huge community of influencers who regularly discuss wealth building and personal finance management is fueling this interest. They use social media to share their wealth building experiences, express their views and offer advice. They have continued to increase their influence.
Personal finance experts are concerned about their recommendations because a large portion of influencers lack the professional skills required to give advice. There is also the question of the interests rooted in the promotion of a specific point of view. Small investors with insufficient knowledge are often forced to pay the price for an unsuccessful decision in the market. They could act under the guise of a lawyer posing as an acquaintance.
Take control of your financial future: As a result, a growing percentage of young professionals recognize the need for financial literacy. This has resulted in an upward trend, in part thanks to the possibility of distance learning. Many institutions and specialists have teamed up to deliver financial education and awareness courses that include content relevant to Indian clients, well researched and objective. There are courses specially designed for entrepreneurs, small business owners and women.
Getting the message across to non-financial people: While financial literacy is a hot topic right now, organizations like the National Stock Exchange have been offering such courses for over a decade. So far, they are mainly aimed at large companies. “Financial literacy and management is a significant gap in our education in general,” says RehanaD’Suza, vice president and head of business development, National Stock Exchange of India Limited, of the need to broaden understanding. This causes a complete lack of trust in young professionals, making them vulnerable to fraud and bad financial judgments. Popular advice obtained from the media or social networks is often biased or inaccurate. Client companies rely on us to provide them with accurate, up-to-date, objective, well-documented and efficient equipment. “
The majority of their audience is made up of non-financial people who have difficulty grasping the fundamentals of finance. As a result, these organizations frequently collaborate with communication experts to get their message across in innovative ways.
People who found the financial literacy seminars uninteresting – because they found the topic scary and difficult to understand – are now interested in seeing 12-minute street dramas. Using an artistic medium to demystify such a topic helps us grab the audience’s attention before a host begins serious discussions on topics like savings, investments, and other topics. “
Such measures contribute to a more favorable investment climate, encouraging young people to increase their participation in the economy while benefiting from overall growth.
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Posted on: Monday, January 10, 2022, 7:00 a.m. IST