Financial literacy is critical for young people to make the right investments, steer clear of debt and accomplish their goals. Despite its importance, India ranks far behind other countries in terms of financial literacy, according to a 2019 report by the National Center for Financial Education.
Here are a few tips on how youth can develop their financial skills in 2022
Take the time to self-learn a few financial basics through tools freely available online like finance books, podcasts, and talks.
Follow credible accounts on social media to keep up to date with financial tips daily
“Subscribe to financial newsletters and publications. Establish a planning process to make savings routine,” says Robin Bhowmik, Chief Business Officer- Manipal Global Education Services (Skills Academy).
Maintain financial records to monitor and manage expenses
“Get an understanding of the stock markets, equities and mutual funds early. Set realistic personal goals to incentivise the process,” opines Bhowmik.
“Get involved in day-to-day budgeting at their home. Start saving money from their pocket money/internship stipend,” says Professor Dwarika Prasad Uniyal, Pro-Vice-Chancellor (development and leadership) and Founding Dean, School of Economics and Finance, RV University.
Watch business news channels
Discuss issues of markets and economy with teachers, parents and friends
Experiment with Mutual Funds initially, read about them and the risks involved
“Create a small portfolio and monitor it. Once confident, one can directly start investing small amounts in equities through companies like ZERODHA,” adds Uniyal.
Follow some good Twitter handles who give insights about markets and investing
Try to take measured risks in the markets and closely monitor the portfolio of stocks