76% Indians Lack Financial Knowledge

Whether paying back a student debt or investing for retirement, these decisions have long-term impact in our lives. However, we often fail to understand them due to lack of financial knowledge. As per Organisation for Economic Cooperation and Development, “Financial literacy is a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and achieve individual well-being.” Financial planners, advisors and trainers point that basic financial education includes an understanding of importance and advantages of savings, and avoiding unproductive loans. It also involves learning about interest rates, power of compounding, importance of time as a value of money and influence of inflation. Most importantly, in the current system, it is borrowing, investing and saving with the formal financial sector. “Most educated people...