Financial Literacy: An Important Tool for India’s Economic Growth – News18

Written By Arun Singh Tanwar

Financial literacy is the need of the hour today. There are many people who are running in the race to earn, but they don’t know how to save the money that they are earning. People of India are running in the race for financial freedom without having financial literacy.

In India, only a fraction of people have knowledge of investing their money at the right place and enjoy the power of compounding. The majority of adults are unaware of the concept of financial knowledge that involves investing, taxation, compounding, insurance, and budgeting.

This gap in financial knowledge is creating a hindrance in the journey of a financially free future for the majority of Indians. In turn, it is a major roadblock in the economy of India. Financial literacy is the key driver of every economy.

Having financial literacy empowers you to have several sources of income. One of the biggest sources that it adds is investing. When you learn to invest your money in the right place you enjoy good interest on your capital in a timely manner. This works as an excellent side income and secures your future.

Secret for India’s economic growth

Along with infrastructure and investments, India’s economic growth requires the people to come ahead and make their contribution. It is high time that people learn and are offered financial literacy unbiasedly.

Having a sense of financial management will help India generate more and more ideas for business.

All these years, no school in India talked about how to manage money, how to pay taxes, how to invest, and get tax benefits. Financial literacy is lacking from the core, we need to start taking charge by educating the students from their teenage years about finances.

By the time a student completes their education, they should be well-versed in investment, the stock market, taxation, and budgeting. This will go a long way with them.

By the time a person encounters the world with a perceptive of earning, they should know how to generate income from their existing income source. The majority of our youth is burdened under the weight of EMIs and debt. The reason behind this is they often buy things or put their money in places that are not good enough for them.

One should know how to make their money work for them to get financial freedom in the future. When each person knows how to invest their money wisely for a better future, the economy of India will surely witness the brightest future.

Schools and colleges should now take the initiative to push the youth to start their own businesses or become entrepreneurs. With India being a country of people of more than 140 crore, opportunities are on every corner. We just need to be on the right path to finding these opportunities.

(The author is founder and CEO of Get Together Finance)