FINANCIAL CAPABILITY AND THE NEED FOR FINANCIAL EDUCATION: A STUDY AMONG YOUNGSTERS IN SELECTED AREAS OF CENTRAL MUMBAI

To quote Acharya Chanakya – “Wealth is one of the most significant factors in life. It brings you the honour; it supports you and makes you capable of dealing with calamities.[1]” 

In these days of increased social media exposure and consumerism, saving and investing have taken a back-seat in the priorities of youngsters. The days of saving one’s pocket money or salary are gone and this generation of youngsters focusses more on instant gratification for their needs.

India's household savings have hit their lowest point in 47 years. In the years 2020-21, a savings rate of 11.5 percent of the gross domestic product (GDP) was reported and the same is now at 5.1 percent in 2022–23[2]. Low savings rate coupled with increasing debt by households is a harbinger of lower economic growth.

In the light of such changing thought, the need was felt to carry out a small study on financial literacy levels among youngsters. Saving money can be said as a cornerstone of one’s life and the road to a safe, secure and happy future. Wealth management must be the focus instead of earning income. The focus must shift from earning income to managing money wisely. This research study has tried to gauge the level of financial acumen, the attitudes towards finances and resultant financial behaviours among youngsters in selected areas of Central Mumbai. The study tries to arrive at correlations between demographic variables such as gender, age, family income and ability to save income. The study attempts to highlight the wrong notions surrounding certain financially prudent actions like insurance, investing in gold and in stock markets. The study also tries to bring out the low level of awareness among youngsters for small savings. The paper concludes with a discussion about the results and its implications to researchers, and other stakeholders.