Financial literacy is crucial in daily life as it empowers individuals to make informed decisions about their finances. Understanding concepts such as budgeting, saving, investing, and debt management allows people to effectively manage their resources, avoid financial pitfalls, and achieve their financial goals. Keeping in view the need to have financial literacy, the Finance Club- Aarjitha organized a seminar on financial literacy by inviting Mr.TV Sudhakar, the former General Manager of RBI on 6th February 2025.
The Speaker began the session by sharing statistics that only 22% of Indians are financially literate and a mere 17% of the student community possesses financial awareness which is very alarming. These figures highlight a significant gap in the knowledge that can have lasting implications on the financial future of the citizens. One of the key topics discussed was the CIBIL score, which plays a crucial role in determining an individual's creditworthiness. He explained the importance of CIBIL score which gets updated every 15 days that reflects on the responsible financial behaviour and is essential for obtaining loans, credit cards and other financial products.
The speaker further addressed the issue of online job scams, which have become increasingly prevalent in the digital age and provided the students with techniques to learn, identify, and avoid these scams effectively. Awareness of common red flags, such as unrealistic salary offers and requests for upfront payments, was well explained to the students to protect themselves from falling victim to fraudulent schemes. The seminar also highlighted the importance of breaking unhealthy spending habits, such as impulsive buying and spending without budgeting, where the need for students to establish an emergency fund, which can provide a financial safety net in times of unexpected expenses was also emphasized. He also addressed the growing concern of online frauds, including cyberbullying, cyber grooming, email spoofing, job frauds, and juice jacking and explained how these fraudulent activities can impact individuals, particularly students who might be more vulnerable. He provided practical advice on how to recognize these threats and take preventive measures, such as using strong passwords, being cautious about sharing personal information through online platforms, and verifying the authenticity of job offers. To empower students further, Mr. Sudhakar shared ways to report fraud to the appropriate authorities. He advised students to contact their respective bank managers for financial concerns and to report cybercrimes to the local cyber security police station.
The financial literacy seminar was a vital initiative aimed at encouraging responsible spending habits and fostering a proactive approach to financial management among the students, to empower them to take control of their financial futures and make informed decisions that will benefit them in the long run.
