Empowering Minds, Easing Burdens: The Role of Financial Literacy in Alleviating Financial Stress
Keywords:
Financial stress, Financial Literacy, Money, Risk, Channels, InvestmentsAbstract
The Goal of the country is Viksit Bharat 2047, is the vision to transform India into a developed nation by 2047, the 100th year of independence. This vision encompasses various facets of development, such as economic growth, environmental sustainability, social progress and good governance. Sustainable country growth is possible only with individual economic growth as they are tightly coupled. This is possible by imparting to the citizens the ways to reduce financial stress through financial literacy which is the key roadmap for the Viksit Bharath 2047. Basics of economic / financial growth of individuals start with understanding the importance of financial management which is commonly known as Financial Literacy.In the current economic scenario, the world has evolved to witness a perception that money is all that matters, and its mere presence is vital for subsistence. Money has for centuries determined the survival of the fittest and has repeatedly proven to be a factor for protection as well as destruction. Around 75-80% of the world’s population are under financial stress - unawareness of income at hand, inability to repay their debts, and inadequate planning. It is hence necessary that one manages this money carefully through various financial strategies and prudent planning. Financial planning should be based on financial literacy i.e. awareness of various investment opportunities in the market. Financial literacy helps reduce the financial stress of individuals. This paper aims to focus on managing financial stress through financial literacy by understanding the essentiality of money. The paper also provides an overview of the various financial channels available for investing and the various triggers of financial risk and proposes solutions towards improving the financial literacy levels that will enable the citizens of India towards developing into a Viksit Bharat.
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