Financial Literacy - steps YEF is taking
24 May 2021
What steps YEF will take to increase the financial literacy
1. Importance of banking
We will teach about importance of banking and how to open a bank account. How they can deposit their funds and earn interest annually. The major benefit of opening a bank account is people can avail subsidy and also take loan from bank at a lower rate of interest as compared to moneylender who charge high rate of interest.
2. Govt. Policies
We will teach people about various policies launched by govt. to increase reach of financial products to poor people. Various Govt. Policies like - Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Atal Pension Yojana (APY), Pradhan Mantri Mudra Yojana, Pradhan Mantri Vaya Vandana Yojana etc.
3. Approaching to self help groups
Self help groups is a group of people who are on daily wages, they form a group and from that group one person collects and gives the money to the person who is in need. These groups generally have 20-25 people in one group. We can approach to 2-3 groups and we will teach about different investment options available for their savings. By teaching to only to leaders of these groups helps to cover large no. of people in a limited time.
4. Spreading awareness among school Teachers
We will spread awareness about financial literacy in nearby schools of particular area because Children will listen to teachers more attentively. If teachers are financially literate then they can teach large no. of students in class.
We will encourage parents to start giving pocket money to their children and parents told them that you need to save minimum 10% of your pocket money at the end of the month and you need to note down all your expenses. When children are in habit of savings, then parents teach about investment options and asset allocation concept to their children. Some people say they have low income so they can’t give pocket money and financial planning is not for their children. It’s a myth because one can start by giving small amount like 100 rupees and financial planning is for everyone.
6. Prepare Journal
Encourage people to Record expenses, income, assets and liabilities. By preparing above format, people can have record of where they are spending excess amount and from they can increase assets.
7. “Financial Literacy Bootcamp – way to build wealth” We will plan to launch a two day financial literacy bootcamp. If there are 100 people lived in an area and we can assume minimum 4 members are in one family, then it is compulsory to attend this bootcamp by atleast 1 member of family. By this we can cover 100/4= 25 people from that area and these 25 people can teach the concepts related to personal finance to their family. By this way, we can reach to 100 people within limited period of time.
On 1st day – We will teach all the concepts related to money like Asset, liability, income, expense, investment etc.
On 2nd day – We will organize a game to check risk taking capacity of an individual. We will give virtual money to all participants and provides different investment options to give them a real life experience and we will change the market conditions and prices of securities. By the end of the game, we will check everyone’s portfolio and teach them asset allocation concept and risk factors using this real time case study. With this we can help them to build an idea of how things are working.