Targeting Financial Literacy in India

In today's world, financial services have become easier to access; financial markets are offering a vast variety of products with complex features and services, making financial literacy a first step towards development of financial system. Financial literacy skills may rather be considered as not only essential for both minimising and solving financial problems, but is also vital for living a prosperous, healthy and stress-free life. Financial problems are often observed as the cause for mental illness, anxiety, stress, depression and lower self-esteem and a host of other bad experiences in life. The government of India and Reserve Bank of India have also emphasised on spreading financial literacy as a foremost step towards financial inclusion.

the study aims to understand various dimensions of financial literacy and further aims at identifying specific focus areas for progressing towards financial literacy in India Methodology.

The present study explores the different aspects of financial literacy amongst the youth in India that is relevance of financial education, three dimensions of financial literacy and initiatives taken in this regard by policy makers/regulatory authorities in India.

India is having the highest proportion of young people in the world; this demographic dividend also makes a strong case for the meaningful participation of youth in financial system by ensuring financial literacy among them. Youth is such stage of life, wherein, young people are grappling with many physical and emotional changes and are eager to learn. The study concludes that the strategy for imparting financial literacy in India should primarily focus on imparting the financial knowledge to youth, so that they keep on growing in their understanding about money matters and also make a difference to the nation and to the world.

Given the emphasis on education, the financial literacy in India can be easily enhanced through inclusion of relevant material on financial literacy in the general curriculum of schools and undergraduate/post graduate courses, intensive financial education campaigns across the country and providing financial education material online.