Financial Literacy Among Youth! 96% Of Parents Feel Their Children Lack Money Management Knowledge; Survey

An overwhelming majority of the parents, 96 per cent, felt that their children don't know much about money management tools and need a financial education from trusted sources. The data were recorded in a survey by Muvin and Momspresso to see the condition of financial literacy among youth.

However, the survey also highlights the increasing inclination of youth towards learning digital-age financial solutions. It found that almost 93 per cent of teenagers are interested to learn digital payments, and just a meagre 22 per cent of them are confident in using the same.

Muvin, headquartered in Bengaluru, is a teen-centric pocket money app led by co-founders Mukund Rao and Vineet Gupta. Whereas, Momspresso was founded in 2010 to empower women to express their self and earn by using the platform. Both companies came together to plan, implement, and execute the survey.

The co-founder of Muvin said, "Indian teens are becoming financially independent, more than ever before. As young consumers, they are opinionated about their personal life and the choices they make, whether it is related to gadgets, fashion, food or travel," reported LiveMint.

The survey conducted by two companies analysed responses of 600 teenagers studying in classes seven to 12 along with their parents. Additionally, the survey found that 94 per cent of parents believe that their children are inclined toward learning financial solutions and digital payments through several mechanisms.

Taking a step ahead, almost 70 per cent of teen respondents highlighted that they want to learn more about crypto assets like non-fungible tokens and blockchain technology.

Why Is Effective Money Management Important?

The money management aspect of everyone's life is crucial as it manages finance, the most vital factor to sustain life intelligently. Managing own finances gives a better perspective of spending money- where is it going and how it's being spent? It leads to saving in budget and increases personal savings, effective for the long term.

It's also an important tool to reach financial goals as it teaches the person to control the money. The people who keep track of their expenses and review the same periodically reach their financial goals sooner than people who don't follow money management rules. When it comes to youth, they have more opportunities to invest the money as it grows with time.

The co-founder and COO of Momspresso.com, Prashant Sinha, said, "There is a growing need for financial literacy among India's youth, as is evident from the Financial Literacy survey. We are delighted to have partnered with Muvin in helping teens make better financial decisions by increasing awareness through the research and the upcoming Money Olympiad - a first in India at this scale."

Many teenagers don't keep track of their expenses and remain unaware of the losses they make in the long term. For example, teenagers who use net banking or other similar platforms keep better track of their expenses than others who execute expenses offline without tracking. The tracking mechanism helps reach financial goals sooner as it is effective for saving balances.

Also Read: Rajasthan Govt Decides To Fund Distant Education For Women Students In State, Ensures Fee Reimbursement