India is undergoing a period of rapid economic transformation, yet financial literacy among its youth remains alarmingly low. Consider the case of a young graduate burdened with student loans, unsure of how interest builds up or how to budget effectively. This is not an isolated struggle but a systemic issue affecting millions of Indian students. Without financial literacy, they face significant challenges in managing their finances, making informed career choices, and contributing meaningfully to the economy.

2023 study revealed that Indian college students scored an average of just 11.82 out of 21 on financial literacy assessments, highlighting widespread struggles with fundamental financial concepts such as budgeting, saving, and investing.

- ASHUTOSH DASH

Similarly, a 2024 World Bank study found that only 27 per cent of Indian college students could correctly answer basic financial questions. This gap in financial knowledge is deeply concerning, as students are increasingly required to navigate complex financial environments—from managing student loans to understanding employment benefits.

The consequences extend beyond individual struggles; they pose a broader economic challenge. Financially illiterate individuals are more likely to accumulate unmanageable debt, make poor investment choices, and struggle with financial planning. This not only affects their financial stability but also impacts national economic growth.