2. Financial planning helps you determine your short and long-term financial
goals and create a balanced plan to meet those goals.
Today, financial literacy is a major challenge in India.
As shown in figure 1, the percentage of financial literacy was observed quite low
as compared with most developing countries in the world.
0
14
28
42
56
70
Brazil
India
C
hinaU
nited
States
U
nited
K
ingdom
France
G
erm
any
Figure 1: Wide Variation in Financial Literacy around the World
Source: S&P Global FinLit Survey
3. A large number of stakeholders including the central and state governments, financial
institutions, financial regulations, civil society, educationists are all involved in
spreading financial literacy
The formulation and implementation of financial education in India will help in
empowering the individuals through proper management of one’s finance
As a nationwide strategy financial education can be attributed to the following reasons-
Knowledge and Skill
Freedom from Exploitation
Avoidance of over-Indebtedness
Promoting Entrepreneurship
Positive Spillover effects
Shifting of Pension Responsibilities from State/ Corporations to Individuals
Deeper Participation in Financial Markets
4. Knowledge and Skill
Financial education is essential because it develops knowledge, skills, and confidence to
utilize financial products and services
It helps you to plan your present well and at the same time, it enables you to control
your future circumstances effectively
Freedom from Exploitation
Financial literacy will make you aware of your rights, plans, and benefits associated with
financial management
It will provide you with the right knowledge, and at the same time protect you from
tempting but fraudulent get-rich-quick schemes and the exorbitant interest rate
charged by moneylenders
5. Avoidance of over-indebtedness
Promoting Entrepreneurship
Financial education benefits entrepreneurs by expanding awareness about new
financial products and at the same time, it also helps them to understand the dynamics
of market mechanism and improve their business dealings
Financial literacy will also improve the quality of services and lead you toward making
a wise financial decision
Financial education will help you understand the consequences of over-indebtedness
and the strategies to avoid it
6. Positive Spillover Effects
Shifting of Pension Responsibilities from State/ Corporations to Individuals
A financially educated person would be more aware of the benefits of financial
management and planning
A financially aware household would resort to regular savings, which, in turn, would
lead to investment in right channels and income generation
Financial education can lead to multiplier effects in the economy
The financial well being of individuals will, in turn, increase the welfare of the society
If every individual in India is financially literate. It will reduce the strain on social
programs and pension plans, also it will foster an economy that is more resilient
7. Deeper Participation in Financial Markets
This will allow domestic savers to reap the benefits of corporate growth and will also
reduce the strain on Government Treasury for investment in National Infrastructure
In India, it’s essential for us to convert savers into investors. Since the percentage of
financial literacy in India is very low, the number of individuals investing in financial
markets is also low
We need the participation of domestic retail investors in securities market to give
dividends by increasing the depth of securities market, for reducing the dependence
on foreign investors
All this can only be achieved if our population is sound in principles of financial literacy
8. Power to Me- India
For more information on Power to Me, click here
Power to me is also contributing a bit towards the upliftment of financial education in
India
We have designed a detailed and structured Financial Literacy programme which will
empower you with the right information needed to plan your finances well
You can directly Register Now
