Financial literacy, a key trend among today’s youth

By Shikha Mittal

There was a period when famous novels like 'Rich Dad, Poor Dad' were the primary source of financial advice for Indian teenagers. Despite the outstanding principles, the prose was unrelatable to an Indian reader, and the advice was unworkable. Professional advice, on the other hand, was out of reach due to the prohibitively high cost of hiring a financial planner. As a result, the Indian retail investor stayed away in large numbers. That was a long time ago.

The social media pull – pros and cons

A huge community of influencers who routinely discuss wealth creation and personal finance management is fueling this interest. They use social media to share their wealth-building experiences, voice their views, and offer advise. They've steadily increased their clout.

Experts in personal finance are concerned about their recommendations because a big proportion of influencers lack the professional skills required to give guidance. There's also the issue of entrenched interests in promoting a specific viewpoint. Small-time investors with insufficient knowledge are frequently forced to pay the price for a decision that does not pan out in the market. They could be acting under the guise of counsel posing as knowledge.

The benefits and drawbacks of social media

This enthusiasm is fueled by a large group of influencers who often debate wealth development and personal financial management. They utilise social media to share their wealth-building stories, express their opinions, and provide advice. They've slowly grown in influence.

Personal financial experts are concerned about their suggestions since many influencers lack the professional abilities needed to provide advice. There's also the question of vested interests in supporting a particular point of view. Small-time investors with little information are usually compelled to pay the price for a poor investment selection. They might be posing as advice and acting as if they had information.

Taking charge of one's financial situation.

As a result, an increasing number of young professionals understand the need of financial literacy. Because of the capacity to study remotely, this has resulted in an upward tendency. Many organisations and experts have linked up to provide financial literacy and awareness courses that are relevant to Indian clients, well-researched, and impartial. Entrepreneurs, small business owners, and women can take programmes tailored to their needs.

National Stock Exchange have been providing such lessons for more than a decade.Seek vector Logo/wikipedia

Getting the word to people who aren't in finance

While financial literacy is currently a popular subject, organisations such as the National Stock Exchange have been providing such lessons for more than a decade. So far, they've mostly catered to big businesses. On the need to extend awareness, RehanaD'Suza, Vice President & Head of Business Development, National Stock Exchange of India Limited, states, "Financial literacy and management is a huge gap left in our education generally."

It causes young professionals to lose all faith in themselves, leaving them open to deception and unwise financial decisions. The media's or social media's popular advice is usually slanted or wrong. Our corporate clients count on us to provide them with accurate, up-to-date, objective, well-researched, and effective content."

The majority of their audience is made up of non-financial people who have trouble grasping financial concepts. As a result, these organisations routinely work with communication professionals to find new ways to communicate their message.

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People who used to dislike financial literacy workshops because they considered the subject frightening and difficult to relate to are now interested in watching 12-minute long street dramas. Using an artistic medium to demystify such a subject allows us to capture the audience's attention before a facilitator begins serious conversations on things like savings, investments, and other topics."

Such policies help to create a more favourable investment climate, enabling young people to become more involved in the economy while benefiting from overall growth.

(IANS/PR)

(Keywords: Financial literacy, today's youth, Rich Dad Poor Dad, RehanaD'Suza, Vice President & Head of Business Development, National Stock Exchange of India Limited)