Gravitas Plus | Financial Literacy: The need of the hour

how much do you love money enough to die with money in your bank weird question i know and that on a sunday i ask this because a lot of people die with a huge amount of savings in the bank money that they worked really hard to earn money they cut many corners to save money they never really got to spend do you know how much 18 830 crore rupees is lying unclaimed in indian banks this is as of 2019 who does this money belong to people who have not claimed it in more than 10 years many of them may be dead many others may have no inheritors why did they save up so much money if there was no way they could spend it or pass it to another generation a survey found that most people save up or build assets if they can even in retirement why do they do so for unforeseen costs said 40 percent of the respondents legacy said many some said having money in the bank made them feel better a handful of them said they were scared they may run out of money if they started spending twenty percent said they do not want to spend money even in retirement because money once spent cannot be recovered here's an unpopular question why earn money if you cannot spend it what if someone told you that you can save enough money without being needlessly frugal hello and welcome to gravitas plus i'm palki sharma and this is india a country where at least 75 percent of the population is literate but only 24 percent of the adult population is financially literate meaning only 24 percent of indian adults understand the fundamentals of saving investment debt and budgeting fifty percent of indians save zero to twenty percent of their earnings salary then there are indians who contribute to the 18 000 crore plus rupees lying unclaimed in banks by saving too much and dying with money in the bank we are either overspending or over saving we don't know how to handle our money better the answer to that lies in our school classrooms in class 8 we are taught how to calculate cost price and selling price we are taught how to find answers to questions like this one we are taught how to calculate simple interest by multiplying p with r and t and dividing the sum by hundred and this sums up our financial literacy we know theories but not the application we are taught calculation but not how to make decisions in money matters we take money related calls every day how many times a day do we calculate the area of a triangle or the value of x no puns intended today in maharashtra only 17 percent of the population is financially literate 32 in delhi 21 in west bengal then you have chhattisgarh pradesh assam bihar haryana gujarat jharkhand karnataka sikkim and nagaland and 13 in punjab overall the financial literacy rate of india is 24 china's financial literacy rate is just as bad 28 russia 38 brazil 35 south africa 42 percent brics is a mess when it comes to financial literacy developed countries aren't much better off 38 of us households have credit card debt 33 percent of american adults have saved zero dollars for retirement the lack of financial literacy is a global problem most of us end up turning to our friends and family for matters of personal finance many of us do not even know anyone who knows finance what should we do fix the basics the answer again lies in our school classrooms it's there that we should start talking finances we must include financial literacy in school curriculum it will help people understand economics understand loans interest investment budgeting today many students take high interest loans for college spend much of their salary repaying debt they fail to save take credit cards to meet their expenses and get trapped in a cycle of borrowing and paying off today the concept of budget is alien to many millennials even older people it's hard for most people to follow simple steps like determining income calculating expenses setting realistic saving goals and tracking them a survey found that 72 of indians are unaware of how much to put aside or invest in order to achieve financial freedom 76 said that there's a need for more education in the financial planning space 51 percent of millennials said that their level of personal finance knowledge is holding them back from making financial progress financial literacy helps you make that progress it helps you maintain a healthy credit score in many countries it is hard to even get a rental apartment if you do not have a good credit score recruiters too take credit scores into account financial literacy can also improve a person's standard of living estimates say that you need at least one million dollars to retire this is if you want to live 30 years without working financial literacy can help you make smart investments without having to be frugal you see the key to a good life is not saving aimlessly it is smart investments if you're worried about future medical expenses take life-term insurance that include medical covers and frankly i'm not an expert on finances but i can share what some experts have told me they say start investing early diversify your portfolio divide your goals into short-term and long-term a vacation or a new fridge could be a short-term goal retirement and a house in the hills is a long-term goal your child's college and bequest again your long-term goal this is just the tip of financial literacy it's a subject that we must all deep dive into and now is the time to start we've all heard stories about covet victims who have passed away leaving behind a pile of debt for their families many have mortgaged their family homes many their cars and businesses financial planning can help avoid such crises and more and more countries are now realizing this in the united states 21 states have compulsory financial literacy new jersey is the latest in australia financial education has been embedded in school curriculum russia has introduced financial education programs for students of class 2 to 11 but the two countries that take the most pride in their education systems india and the united kingdom are yet to push for mandatory financial literacy programs what should you do if you're watching us from a country that does not offer financial literacy in school go online there are many courses on fundamental finance many of these courses are free no matter what your age is it's never too late to learn educate yourself educate others see how to maximize your saving secure your tomorrow without compromising on your dreams today

Channel: WION

Views: 1,334,512

Keywords: Gravitas Plus, wion, wion news, english news, english news 2021, world news, latest English news, latest world news, Financial Literacy- The need of the hour, Financial Literacy, how to handle money, how well can you handle money, financial literacy lessons, finance management, latest englsih news, world news today

Id: 7oj6gpAbYgw

Length: 7min 28sec (448 seconds)

Published: Sun Jul 11 2021