RBI’s ‘Financial Literacy Week’ started on 13th and will last till February 17, 2023. The Reserve Bank of India (RBI) has been conducting this every year since 2016 to propagate financial education messages on a particular theme among members of public across the country. Last year, RBI observed ‘financial literacy week’ from February 14 to February 18, 2022. The central bank held an event to propagate financial education messages on the theme of “Go Digital Go Secure”.
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The theme selected for current year Financial Literacy Week (FLW) is “Good Financial Behaviour – Your Saviour”. The theme aligns with the overall strategic objectives of the National Strategy for Financial Education: 2020-2025 which aims at building financial resilience and well-being while creating awareness among members of public. Focus will be on creating awareness about savings, planning and budgeting, and prudent use of digital financial services.
Financial literacy is the ability to understand and effectively use various financial skills. The key steps to improve financial literacy include learning the skills to create a budget, track expenses, and learn the strategies to pay off debt.
Today, we are in an era where the average age of India’s population is 29 years, making it one of the youngest countries in the world. These digitally native, young, working individuals with a flair for disruptive technologies, manufacturing automation, and internet-based services are expected to be instrumental towards propelling economic growth. In such an environment, financial literacy becomes one of the youth’s most significant attributes.
Financial literacy is completely different from literacy. Though the literacy levels of the country are increasing; there is no significant increase in the financial literacy levels. Understanding financial concepts and using the money earned efficiently is financial literacy. This includes budgeting, managing credit, investing, etc. Many literates are unaware of the basic principles of stock markets, equity funds or mutual funds. Such knowledge is essential to invest in the right place. This will help in the overall economic growth of the country.
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