“The most important investment you can make is in yourself.” — Warren Buffet.
Despite being the 5th largest economy, with a GDP of almost $ 4 trillion, we have a GDP per Capita of merely $2,500, significantly lower compared to other nations.
If you ask a common man in India whether he is financially literate, he will answer, "Yes, I have a job and I get a salary." But earning is simple — saving and increasing money is the difficult part. Financial literacy is not intended for adults alone, nor betting on the stock market; it is an essential skill that our schools tend to overlook. While most Indians are academically literate, many remain financially illiterate.
“School Teaches you how to Earn Money- not Manage it”
Take, for example, Ramesh, a farmer who, after much hard work, made ₹1,00,000 but fell victim to a 'double your money' scam. Three weeks later, his savings vanished and he was buried under debt. The real problem here is not hackers or cheats — it is financial illiteracy. This ignorance leads millions of Indians into the traps of fraudulent Chinese loan apps and online betting platforms. Many people don’t know how to grow their money safely, which is why they resort to risky and often harmful financial decisions.
On average, an Indian spends more time choosing a new phone than planning for retirement! Even those who earn well, often lack financial IQ, leading to poor financial decisions. High unnecessary tax payments, lavish spending on luxury items, and insufficient savings result in many people retiring without financial security. By the time they retire, they are left with nothing, having lived 30 lavish years without saving a penny.
“70% of Indians don’t invest in stocks” — Statistics.
Others wish to save but don’t know where to begin. They park their money in savings accounts, unaware that inflation (around 6%) outpaces the interest they earn (typically 2–3%), leading to a loss in real value. Had they invested in mutual funds or stocks, they could have earned returns of 15–20%. As Warren Buffett wisely said, “Risk comes from not knowing what you’re doing.” Many people consider these investment options risky simply because they do not understand their inner workings.
Moreover, A whopping 95% of Indians lack insurance coverage, and this spells catastrophic financial repercussions for families when a medical emergency hits them. This ignorance surrounding insurance and its huge advantages leads people to delay or even avoid coverage — only to regret it afterwards.
The Solution- Financial Literacy
Financial literacy teaches individuals all about various investment alternatives like mutual funds, the stock market, real estate, and retirement planning. Smart investors help boost long-term economic growth and ensure their future.
India is in desperate need of financial literacy to realize its dream of a Viksit Bharat. It is only when the entire population is financially literate that the country can move forward. A well-informed population can invest money intelligently, make intelligent investments, and participate actively in the financial markets.
This, in turn, enhances capital formation, boosts entrepreneurship, and accelerates wealth creation, ultimately leading to a higher standard of living for all.
Financial literacy also enables small business owners to manage cash flow efficiently, secure credit, and navigate complex taxation policies. By fostering a financially aware entrepreneurial ecosystem, India can nurture innovation, create jobs, and strengthen its economic foundation.
The Way Forward
To create a financially literate India, we require workable steps. Education institutions must incorporate financial education as part of their curriculum, including budgeting, investment, and taxation. Young adults in their 20s must begin with mass investment — SIPs in mutual funds rather than low-interest savings accounts. Governments must initiate public awareness campaigns about scams, insurance, and retirement planning. Employers must provide financial wellness initiatives, and counsel employees on tax-saving and prudent investing. By these measures, we can convert financial illiteracy into financial empowerment, opening the door to a truly Viksit Bharat( Developed India ). “Whether rich or poor; Educated or illiterate; salaried or businessman; a 20 or a 50-year-old; Financial Literacy is the key to unlocking a brighter future for all.”
I am writing this essay as a 14-year-old who started learning about financial literacy four years back and enjoyed it the most as the most relevant and needed subject I have studied out of the school curriculum. From what I have experienced, I can assert with conviction that financial literacy must be made a mandatory subject in all schools, right from the grassroots level. Only when all students are not only literate in academics but also financially literate can we fulfil the vision of a Viksit Bharat.
DoubleSpeak 