Financial literacy education for the Indian consumer: the road to economic development

Abstract

The economic growth and the expansion of the financial markets, have given the Indian consumer a plethora of investment products to direct his/her income towards. However, the low levels of financial literacy prevent the individual from making a judicious choice with regard to his/her financial planning. Hence, in order to ensure effective financial decision-making, it is high time that India took the necessary steps in promoting financial literacy education to her citizens. In this article, the author highlights the case for the promotion of financial literacy education in India in the present times. The need for promoting financial education among Indians arises on account of various demographic, market driven (economic and financial), technological and social factors which are highlighted in the article. Further, a framework for the curriculum for ensuring the coverage of various aspects of financial literacy education is discussed and elaborated upon. Imparting financial literacy education is very important for the nation's economic growth and development and hence the successful implementation of the financial literacy programmes would lead to various benefits such as increase in financial confidence, better planning for future needs, consumer protection and financial inclusion which are also discussed.