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The Way of Financial Capability Is Through Financial Literacy: Indian and Global Scenario

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The Way of Financial Capability Is Through Financial Literacy: Indian and Global Scenario
The way of Financial Capability is through financial literacy: Indian and Global Scenario

Asst. Prof. Prajakta Joshi
N-12, Maurya Vihar, Near Sahajanand Society, Kothrud, Pune -38
Email – prajakta32@yahoo.co.in
Contact no. - 9371207428

The way of Financial Capability is through financial literacy: Indian and Global Scenario

Abstract

In every stage of life people face challenges to take certain financial decisions. Financial illiteracy is inability to make informed judgments and effective decisions regarding the use and management of money and wealth which affects their family and society at large.

It is utmost important for a country to take steps for financial literacy in order to improve the standard of society society and economy of the nation. Financial literacy is the set of skills and knowledge that allows an individual to take appropriate financial decisions.

The objective of the research is to understand financial literacy and its importance. It also aims to understand the current financial literacy initiatives that are taking place in India and other parts of the world.

Financial literacy is more important in country like India where large chunk of population is illiterate hence they do not have easy access to formal financial set up. This population has lack of knowledge about financial planning. The Indian government has insisting on the need for financial literacy and generating confidence among people who burnt their fingers by taking wrong decisions.

The promotion of financial literacy in developing countries is timely and can be a win-win situation for poor people and financial service providers alike.. Financial literacy skills can be applied everywhere viz. managing a wide range of individual, household, business, and community resources. The effective financial literacy is the best tool to help the society to deal with future needs as well as to deal with


References: 1. A Survey of the Banking Industry ' ' (July 2001) 2 3. Eikmeier, B. J. (2007). Trends drive opportunities for financial planning for women. Journal of Financial Planning, 20(6),6.ry of Low-income Students: Literature 4 6. Lusardi, A. (2009). Financial literacy, retirement planning, and retirement wellbeing: Lessons 7 8. Lusardi, Annamaria, and Olivia S. Mitchell, 2006. “Financial Literacy and Planning: Implications for Retirement Wellbeing.” Pension Research Council Working Paper No. 1.viewed December 28, 2012. 9. Lusardi, Annamaria, and Peter Tufano. 2009. Debt Literacy, Financial Experiences, and Overindebtedness. NBER Working Paper n. 14808. 10. Stone, G. (2004, June). Loma. Retrieved July 17, 2009, from: www.loma.org 11
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