The article by BW Businessworld features an interview with Shweta Shende, the Country Head of Sustainable Living at IDFC First Bank. Shende emphasizes the importance of financial literacy and its equal importance for individuals of all income groups. According to her, financial literacy is a fundamental human right that enables individuals to manage their finances effectively and make informed decisions about their financial lives.
Shende states that financial illiteracy can have severe consequences, including living paycheck to paycheck, accumulating debt, and missing opportunities for financial growth. She cites a study that found that even in developed countries, 76% of students are not familiar with basic concepts of personal finance, such as compound interest.
The IDFC First Bank’s Shende suggests that financial education should be provided at the early stages of an individual’s life, starting with children in elementary school. This, she argues, would allow them to develop healthy financial habits and make sound financial decisions.
Shende further highlights the disparities in financial education among different sections of society, with those from lower-income families being less likely to receive such education. This, she suggests, perpetuates a cycle of financial illiteracy and inaccessibility. To address this, Shende advocates for programs that provide affordable financial education services, particularly targeting marginalized communities.
In addition to individual financial education, Shende emphasizes the need for financial systems that are equitable, inclusive, and accessible. She suggests that banks and financial institutions have a crucial role in providing financial products and services that cater to diverse needs and socio-economic backgrounds. By doing so, they can promote financial stability, reduce income inequality, and enable individuals to break the cycle of poverty.
In conclusion, Shende firmly believes that financial literacy should not be a privilege for the financially literate few, but rather a fundamental human right that all individuals should be entitled to. By providing early financial education and inclusive financial services, we can empower individuals from all walks of life to manage their finances effectively and achieve long-term financial well-being. As Shende suggests, “When people are equipped with financial knowledge and skills, they can transform their lives, communities, and the economy at large.”