Today, India is emerging as one of the largest and fastest-growing economies in the world. The country is now seen as a powerhouse both on the technology as well as manufacturing front. This has led to a steady increase in foreign investments directly playing an important part in India’s growth story. However, apart from the use of technology and increasing production capacity, one of the major reasons why businesses, as well as many household’s and individual’s monthly budget management plan fails, is due to lack of financial mismanagement. According to the latest census, 74.04% of total India’s population is literate. However, the number changes to less than 25% when we talk about financial literacy in India, which is the lowest among major emerging economies in the world. The major reason for this is not seen as the non-availability of the right tools for learning about finances and money management. But rather it is the non-exposure and ignorance to these skills starting right from childhood.
Financial literacy not just refers to managing your taxes and monthly and daily budgets in an optimum way, but also how to invest your hard-earned money on the right platforms with the right financial knowledge to yield maximum returns. It is the study of understanding how to generate, invest, spend and save your money and ultimately exploring different tools to have the money work for you. For example, in the U.S., about 50% of the people invest in stocks markets and other forms of securities compared to only 2% of the population in Indian markets. This minimal participation in stock markets and other high-return investing tools in India is majorly channeled by a bad perception of markets in the general public’s mind, considering it some form of gambling where one could easily lose all of their money. This has led to people investing in only low return investment options such as Fixed Deposits (FDs) and physical assets such as gold. These investments are though considered very safe but with such minimalistic returns of 6-7%, these are easily beaten by rising inflation which eats your hard-earned money. Financial literacy is the answer to why the “Rich get richer, while the poor get poorer”. Hence, it is now the need of the hour to not just focus on providing education among the masses, but include financial education as an integral part of it.
Keeping the need for inoculating financial literacy among people, the Reserve Bank of India (RBI) recently launched National Strategy for Financial Education (NFSE) 2020-25. The program is aimed at infusing financial literacy among the masses as well shape their savings behavior and boost up their involvement in financial markets.
Building upon this vision to make India and its youth financially literate, FlipItNewscame with the initiative to create a financially literate community with its one-stop solution, FlipItNews app. Launched in 2020, the application provides news around stocks, business, capital and financial markets and related to investments and risk management. The application’s live forum feature along with its financial tools for analysis along with quality tutorials makes it easier to access everything from one single place. The platform is primarily aimed at building a financially literate community, where people can come and interact with each other, discover new things and ultimately develop the importance of financial literacy in their subconscious minds. Do check out FlipItNews app to start your journey of being financial literate. FYI, FlipItNews is the highest rated finance and stocks related app in India today with almost 100,000 downloads in 3 months!