In the formal education ecosystem, financial literacy has materialized as a buzzword for all valid reasons. It is a bitter truth that the financial literacy rate is lower in Indian adults than in adults of other developed countries such as the USA, UK, and Singapore. Surveys disclose that only 27% of India’s population is financially literate. Moreover, only 16.7% of Indian students maintain a fundamental understanding of finance and money management.
Projections declare that India will remain to be the fastest-growing economy in the next few years. Nevertheless, in the absence of proper financial knowledge, the nation’s residents might not be able to reap the benefits of this astronomical financial opportunity. Consequently, YPay is devoted to empowering the youth of Bharat with essential financial literacy, determined to assemble a more knowledgeable and financially savvy nation.
The National Finance Olympiad toolkit comprises comprehensive study material to assemble a financially informed generation. Moreover, the National Education Policy (NEP) 2020 highlights the significance of early financial literacy and supports financial literacy at all educational levels. It enables individuals to learn, grow, and develop crucial financial decision-making skills that help them sail through the complexities of adulthood.
Students are better prepared for unforeseen medical costs, home-related expenses, and unemployment. Furthermore, young students with financial insights and understanding create better retirement revenues. Long-term budgeting employs day-to-day income and expenses thus resulting in better savings and investing in booming funds.
In a study performed by Cambridge University, it was revealed that financial habits are developed by the age of seven, with most young people comprising the fundamental behaviors that will impact their financial decisions throughout their lives.
Establishment of the National Finance Olympiad
With the notion that financial literacy is a keystone for developing a better Indian society, the National Finance Olympiad (NFO) commenced its mission to instill financial literacy in Indian students. The founders acknowledged the necessity of conveying valuable financial knowledge to students, delegating them to steer through the world with confidence. They wanted to manage the gap and foster healthy financial habits in children. NFO is an initiative by Streak – a financial platform that assists students save their money safely. NFO equips students with a national podium to flaunt their financial skills and compete against peers across the country.
Why should financial literacy be taught in schools?
The world is also getting competitive with each passing day, hence children need a strong financial education. Grasping financial education benefits at a young age equips people with the skills they need to plan for a prosperous future, remain solvent, and dodge getting into problematic debt later in life.
Top Benefits of Being Financially Literate From a Young Age
Every parent desires to equip their children with the best opportunities to make their life prosperous. Without hesitation, get ready to introduce them to YPay and jumpstart their financial journey today. The regular usage of YPay can empower your kids with fundamental financial skills while guaranteeing they reap the merits of effective finance management. Permitting children from a young age to acquire the skills to manage money efficiently, including budgeting, saving, investing, and bypassing debt includes a broad spectrum of advantages. Let’s discuss some.
Better Decision-Making Ability: Undeniably, financially literate individuals qualify them to make better decisions regarding spending, saving, investing, and borrowing which eventually leads to better financial results later on.
Financial Liberty: Understanding personal finance efficiently authorizes kids to learn to evolve into more self-reliant beings and less dependent on others for financial aid.
Debt Management: Financially literate individuals can manage and avoid debt efficiently as they have a better knowledge of numerous money-related concepts such as budgeting, needs v/s wants, credit scores, and more.
Financial Security: Being financially literate can provide a sense of safety and peace of mind. Consequently, kids must acquire the knowledge and skills to tackle unforeseen financial hurdles and plan hassle-free for the future.
Wealth Accumulation: Financial literacy permits individuals to make sensible investment choices and accumulate wealth over time through approaches such as wealth accumulation. Wealth accumulation fabricates a protective cushion against an assortment of financial issues, delivering stability and security on rainy days. This financial hedge can assist people in sailing through unforeseen expenses, economic falloff, and other finance-related problems with elevated confidence and strength.
Kick away Financial Difficulties: Financially-savvy individuals are much less likely to fall prey to scams. They are less susceptible to becoming victims of various online and offline fraud schemes, thanks to their heightened awareness and fierce security measures.
Support the Economic Growth of a Nation: A financially literate population leads to a robust economy. Smart financial decisions are more likely to invest, save, and contribute positively to the economy.
Resolve Socioeconomic Differences: Financial literacy education equips all students—irrespective of their background—with the required skills to accomplish financial autonomy and stability that lead to minimum socioeconomic disparities.
Foster Critical Thinking: Financial literacy encourages critical thinking and decision-making skills in individuals. Students understand how to analyze options, assess risks, and make decisions that resonate with their goals.
Alleviate Financial Anxiety: An in-depth understanding of financial principles can relieve stress and anxiety associated with finances. Financially literate students are better able to defeat financial obstacles, leading to greater peace of mind.
The Crux:
In conclusion, financial literacy authorizes both children and grown-ups to make their financial futures brighter by ingraining a sense of independence and accountability in them. The knowledge to make informed decisions about their money is a blessing as it empowers individuals to steer through the complexities of finances.
YPay constantly endeavors to make the youth of this nation financially savvy. Without any further ado, give the YPay card to your children today and blossom their and your country’s future.
