How much do you love money…? i

Weird questions but I ask this because a lot of people die with a huge amount of savings in the bank money that they worked really hard to earn, money they cut corners to save, Money that they never really got to spend. Do you know how much Rs. 18,830 Crores is lying unclaimed in Indian Banks data as of 2019.

Who does this money belong to? To the People who have not claimed in more than 10 years, many of them may be dead many others may have no inheritors so the questions arise, why did they save up so much money? If there was no way they could spend it or pass it to another generation A survey found that most people save up or build assets if they can even in their age of retirement why do they do so for unforeseen costs says 40% of the respondent’s, Legacy said many, so said having money in bank made the feels safe & secure and a handful of them said they scared that they may run out of money if they started spending, 20% said that they do not want to spend money even in their retirement because money once spend cannot be recovered. SO why to earn money if you cannot spend it what if someone told you that you can save enough money without being needlessly frugal.

In India 75% of the population is at least literate but only 24% of the adults are Financially Literate. Hence only 24% of the adults understand the true meaning of SAVING, DEBT, INVESTMENT & BUDGETING. 50% of the Indian save 0% to 20% of their earnings or salary, and then there are Indians who contribute to the 18,000 Crores plus rupees lying unclaimed in the Banks by saving too much and dying with ideal money in the bank.

So to conclude we are either overspending or over-saving.

We don’t know how to handle our money better; the answer to this severe question which needs to be answered ASAP lies in our school classrooms. We are taught COST PRICE, SELLING PRICE, PROFIT/LOSS, SIMPLE/COMPUND INTEREST and this sum up our Financial Literacy, we know theories but not the application we are taught calculations but not how to make decisions money matters. We take money

Source: National Centre For Financial Education Report, 2015.

BRICS – FINANCIAL LITERACY

The developed countries in the world are also not so sound enough when it comes to Financial Literacy as 38% of U.S. households have credit card debt. 33% of American adults have saved 0$ for their retirement. Source: Forbes.

Hence we can rightly deduce that Financial Literacy is a Global problem.