At every stage of one’s life, each one of us deals with money. Money management is a skill which everyone should acquire and this is one of the essential life skills. However, this skill is rarely provided through formal education not only in India, but also in other parts of the world.
Lack of financial literacy is not only limited to rural areas but is prevalent in urban areas as well. Even educated persons are ignorant about basic financial matters which lead to neglecting important financial activities such as investing, getting insured, saving for retirement etc.
In India, the Reserve Bank of India (RBI), together with several governmental agencies like SEBI (NISM) and IRDA have been developing training modules, guides and educational programs in the field of financial literacy. SEBI has set-up NCEF (National Centre for Financial Education) and is aimed at encouraging students to obtain basic financial knowledge on topics such as money, budgeting, investment, banking, savings, insurance, retirement planning and financial planning. They have started a free course through their portal “dhangyan” to cover the following areas,
To overcome and fill this gap of financial illiteracy, many private institutions have come-up towards spreading financial literacy through online and/ or offline courses. We are gowning in a complex world and we all have to take charge of our financial future. Financial education providers provide essential financial knowledge so that one can take care of the basic financial and money management needs.