Breaking Barriers: Empowering Indian Girls With Financial Literacy
- yanabijoor
- May 11, 2024
- 3 min read
The Human Welfare Council states that 80% of Indian women and children struggle with financial literacy. India is expected to become the third-largest economy by 2027, and for it to continue to reach the next level, women need to be empowered to make better financial choices. Over 50% of India’s population is female, and 62% of women don’t have a bank account or have limited access to banking services.
Financial literacy training and access to age-appropriate and girl-centered financial services allow girls and young women to practice saving money, budgeting, investing, and managing finances so they make strong financial decisions when they are older.
More women are joining the workforce worldwide, and they need to be financially literate to thrive in their careers and protect themselves from exploitation to build wealth and be financially free. In India, men hold most of the top financial positions, while women are usually teachers despite studying finance-related subjects. Starting early and teaching girls about personal finance will give them the confidence to succeed in leadership positions in the financial world. Closing the financial literacy gap is crucial because it can empower women to build wealth and contribute more to the global economy. Studies show that reducing the economic gender gap could lead to significant economic growth.
In 2023, Annamaria Lusardi, a professor at the George Washington University School of Business and founder of the Global Financial Literacy Excellence Center, along with Olivia Mitchell, a professor at the University of Pennsylvania's Wharton School of Business, conducted a critical review of financial literacy programs as a follow up to their 2013 working paper. Their research concludes that financial literacy is a crucial form of human capital that should be integrated into economic growth models. Isolated initiatives will not effectively address poor financial decision-making, and wealth inequality should consider the impact of low financial literacy. It is necessary to incorporate financial education into syllabi, textbooks, and economics courses at all levels to improve accessibility. Financial literacy should be included as a macroeconomic indicator in national statistics to assess a nation's well-being, and promoting financial literacy can lead to individuals living more financially secure lives.
Case Studies
National Stock Exchange (NSE) Academy has partnered with Maharashtra Knowledge Corporation Ltd to introduce a basic course in personal financial management for young adults and working professionals. The course covers income, taxation, expenditure, savings, investment avenues, borrowing, managing risk, and budgeting. It is currently available at select MKCL's Authorised Learning Centres.
Home Credit India, a local consumer finance provider branch, collaborated with the Indian Development Foundation (IDF) on a 9-month project to educate 30,000 marginalized women and girls in financial literacy. The project has benefited individuals from semi-urban, rural, and tribal areas of Delhi-NCR, Bihar, West Bengal, Maharashtra, Uttar Pradesh, and Rajasthan.
What Makes a Successful Program?
Financial literacy courses need proper funding, curriculum, materials, and trained teachers. They must be less generic, one-size-fits-all instructions with little follow-up, which will lead to failure. Teaching financial literacy early at home and in school is crucial for developing good financial habits. Successful financial literacy programs should focus on key financial concepts, specific financial instruments, and financial rights and obligations. The courses should be engaging and relate financial decisions to personal happiness. And they should be taught as early as possible and frequently throughout childhood so girls don’t forget these concepts.
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