Young people get a good job – a good income, but fail to manage it financially, the reasons for which should be understood. It was found that 76 per cent people in India were not financially literate.
We can call financial literacy an understanding or knowledge of economic transactions. These 76 per cent Indians do not understand financial terms like inflation, interest rate, risk diversification, compounded interest, etc. There is a lack of understanding of financial literacy among women and men, and this lack seems to be more prevalent among women, not only in India, but in most countries.
The survey also found that the Indian public lacks understanding of financial products, tools and schemes. Thus the survey covered 1.5 lakh people from 140 countries, out of which we have spoken only on the subject from the perspective of Indians. Let’s understand what is drawn.
Confusion Of The Youth Class
It is a well-known fact that from the beginning, young people want to get a job in a big company and get a high salary from the beginning. For this they also take higher education. Earlier there were very few people who went beyond graduation, now degrees like MBA, CA, Engineers, Doctors, CS, etc. are becoming common. In short, these are the days of smart youngsters with smart phones. Those who have high dreams, ambitions, who are also equipped to work hard and want to work with vision as well as focus.
However, the tragedy is that young people who earn a good living by working and feel good about their ‘achievement’ are often not more serious about saving and investing their earnings properly. They also give reasons for their irresponsible behavior towards making investment decisions. As there is not enough money, there are so many investment options that they get confused. Doing so is a very confusing process, there is uncertainty as to where and when to start, a lot of paper work, they are constantly avoiding investing their money properly on the one hand by raising various excuses or reasons, on the other hand they are various Haphazard spending on things Curry is constantly spending their income.
Some Points Should Be Understood
First of all, it is the earning youth who say that systematic investment of money is a complex problem. The first time they open a savings account in a bank to get a loan for a car is the first time they make a decision for their money. The easiest way to understand personal finance is to see yourself as an income generating asset, you are neutral if you earn and also save, you need to generate an alternative source of income if you spend more than you earn. If you borrow money you take on a liability, which you will have to pay out of your future income.
Positive Approach Required
Second, they constantly complain that the world outside the home is totally different from the home, with over-caring elders hindering young people from keeping pace with the outside world. Certain steps need to be taken for financial decisions, which can be taken after studying and evaluating several options. Young people who are quick to solve complex questions in class are often unable to find solutions to life’s problems. The question is whether the hostel catering arrangements or someone else, they forget that the most important thing for solving any problem is time, energy, resources and skills but our approach to problem solving needs to be positive. Young investors need to try to make strategic decisions just like a professional, otherwise they will be unaware of money making decisions or market trends.