InvestorQ : Why most Indians are careless about finance management and financial planning?
Ishita Jain made post

Why most Indians are careless about finance management and financial planning?

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vani Patil answered.
3 weeks ago
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The main reason something is not popular or does not get due acknowledgment is due to lack of awareness. In every country there are all types of people, so we cannot stick reasons to a particular person. You will be surprised to know that even after India’s literacy rate is 80%, only 27% of Indians are financially literate. This shows that the major Indian population does not know about finance, so forget about being aware. This is the situation after initiatives taken by SEBI and RBI to provide assistance and financial literacy via different channels. See, you will notice that half of the people you know do not even have a savings account.

  • These are some of the findings on India’s Financial literacy:
  • Only 39% of the people who have a formal loan are financially literate.
  • About 77% of the total formal borrowers are financially literate.
  • When asked about risk diversification, only 14% of Indians were able to answer correctly.
  • Only 51% of the Indians understood the meaning of Compound interest.
  • When asked about Inflation, only about 56% of the Indians answered correctly.
  • Only 14% of total Indian adults save at a formal institution.
Now, it must be clear from the above presented data that it is not carelessness, but it is just a lack of awareness about how finance could be helpful in general lives.


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