Letter to BS: Improve financial literacy to overcome economic crisis

Covid-19 is pushing the world towards economic depression. India is no exception. With the impending savings drainage, the country's unorganised sector is the worst hit. The government must be lauded for taking remarkable measures for financial inclusion. But it will not suffice unless there is financial literacy. Financial literacy can be defined as the possession of a set of skills and knowledge that allows an individual to make informed and effective decisions with his or her finances. Times of crisis force us to acknowledge its importance. Without it, people fail to make the right decisions. With a plethora of options available in the market, people are tempted to buy stuff that is not crucial for their survival. Often people overspend and fail to invest for their future needs. Had people invested cautiously and saved significantly, overcoming this crisis would have been much easier.

The government and other financial institutions must take responsibility for this and step out to spread financial literacy. Co­mpanies can consider it part of their corporate social responsibility. It is time this is taken up seriously to protect us from economic doom.

Nidhi Singh  Kanpur 

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