Mortals Earn Money, Legends Earn and Manages it Well too : Learn How

India's economic growth has bred a new high-income class, but a stark financial literacy shortfall threatens to dilute this wealth. Recent research shows a sobering picture: just 27% of Indian adults are proficient in basic financial literacy, lagging well behind the world average of 42%. This gulf between the ability to earn and the skill to manage money represents a powerful threat to India's economic growth story.

 

The digital revolution has only made this knowledge gap more evident. Although 82% of Indians have adopted digital payments, just 31% know about the risks involved. More dangerously, a mere 24% know how to compute simple interest, a basic principle of financial planning.

 

IDFC FIRST Bank, to fill this gap, has introduced IDFC FIRST Academy, a comprehensive digital learning platform with 35 free courses ranging from basic to advanced levels. The move is aimed at providing working professionals with the necessary financial skills, and they could well change the face of India's financial sector.     

 

The Reserve Bank of India (RBI) has also acted, introducing Financial Literacy Week 2025 from February 24 to 28 with a special emphasis on women's prosperity. The gender-specific strategy is important given that only 24% of Indian women have the minimum levels of financial literacy.

 

While the nation dreams of emerging as a $5 trillion economy, fixing this financial literacy crisis is important. The effectiveness with which India's economic tigers can manage money will decide whether they can roar or just purr.

 

Source: Business Standard, February 27, 2025