Why is finance not taught in school?
We don’t have enough instructors to teach finance classes (see reason #1) Personal finance isn’t part of the ACT or SAT – if it’s not tested it’s not taught. Education is up to the states, not the feds, and each state has different ideas. There isn’t much agreement as to which finance concepts would be taught.
Why is financial literacy so low in India?
In comparison to other major emerging economies, the financial literacy rate of India is the lowest. This is due to inter-state disparities, lack of formal training and awareness. A survey was conducted by us to analyze the financial knowledge of the population aged between 16-50 years (urban population).
Why is there financial literacy in India?
Financial literacy can be one of the key ways to bridge the gap between your wealth creation journey and economic growth. At the same time, financial literacy will provide in-depth knowledge of financial education and strategies that are crucial for financial growth and success.
What are the consequences of not being financially literate?
Financial illiteracy can result in poor saving, poor spending, excessive credit card use, and bad investment decisions. The stress of financial insecurity in families can lead to divorce, suicide, domestic violence and other crimes.
Why is financial literacy still poor in India?
Most surveys show that financial literacy is still poor in India. Over two-thirds of the population, is not financially literate, i.e., people lack financial planning basics. The Standard & Poor survey from 2014 found that over 76 percent of adults in India didn’t comprehend financial planning basics.
Should financial education be made compulsory in Indian schools?
There’s no doubt that Indian schools need to make financial education compulsory for all. Over the years, the government has initiated policies to improve unsatisfactory literacy rates.
What is the importance of financial literacy in our country?
Talking about economy, we all are well informed about the current economic state of India and hence the need of financial literacy in our country is of utmost importance. Financial literacy helps in understanding basic concepts related to money and brings clarity on general concepts of spending money properly.
What is the impact of lack of financial knowledge in India?
The lack of foundational financial knowledge in India results in inadequate and inferior financial decisions and investments. Most of the people in India are more interested in momentary plans and material gains to fulfill their personal growth, rather than helping in the economic growth of the whole country.