Financial Literacy Mission
Crash course of literacy
Premium on talent:
TODAY’S CORPORATE WRLD puts a premium on talent rather than a top B-school tag. In fact, your college can only help you with academic inputs and placements, but the onus of making use of the opportunity lies with you.
SAFE has launched a financial literacy mission for increasing the employability of participants. Financial literacy mission is different from all other programmes, all over the world. It is comprehensive and all inclusive. It is a continuing learning process. You are advised, not to compare it with any other education, sold as an ‘educational product’ within our country or abroad. The Mission is different due to their innovative techniques and continuity.
In a highly globalised economy you cannot be sure that you are going to get a specific job for life time as there is no such thing today. Skills are becoming obsolete. So you have to be more flexible i.e. you should have a portfolio of assets. That needs the change in education system. Finance minister expressed that the government will shortly launch a package to enhance financial literacy skills soon. We need to impart financial literacy skills at an early stage.
Today if you want to operate in a global economy with lots of players then you have to be prepared to innovate, down the line, technologically. Innovation has now become a big thing as far as living in the world economy is concerned. In the past too the world has witnessed the economic impact of innovation. New technologies – electric power, the steam engine, the aeroplane, and new strains of wheat, vaccines – have transformed not just countries, but the world.
Made in India:
A country is like a brand because it has a reputation, and because that reputation partly determines its success in the international domain. The ability of each country to compete against others for investment is significantly determined by the power and quality of its image. The idea of country of origin effect is the power of the “made in India” level. Whether it adds appeal to products and services and creates a price premium for them and to stimulate customer loyalty towards them. Emerging global financial product brands from countries like India could accelerate economic development more effectively than the typical, unbranded exports of raw materials, unfinished goods and agricultural produce.
When a product is being developed, the developer needs to be clear in his mind as to why he is developing the same, for whom, and how it would help the end customer. Similarly, industries require quality brains that can design quality financial products on the time and in line with market demand. The industry feels that B-school students, even after several years of their courses, are not readily deployable. If we want to create a capable brigade of tech-savvy workforce, we need close collaboration between the industry, government and academia to build up a proficient pool that can sustain the growth in future.
INDUSTRY body Assocham has called for deregulation of the over-regulated higher and technical education since the sector leads to an outflow of nearly Rs 50,000 crore of foreign exchange annually. Every year around 1,20,000 students leave India and go abroad for education and loss to the country is equivalent to expenditure that would go into building 40 IIM’s or 20 IIT’S.
A financial planning exercise will involve defining and prioritising financial goals, understanding how distant they are, and of course, how much will be required to meet them. Each of the financial products available today – ranging from bank deposits, bonds, G-secs, life insurance, mutual funds to stocks – is structured along factors such as term, risk, and liquidity to meet different needs.
Stock market is no different from playing a Russian roulette for some or like putting a bullet inside the revolver, spins the cylinder, face the muzzle towards the head and pull the trigger. Either you are lucky or you are a dead man. For the short-term investor in equity fund, investing is found to be akin to Russian roulette – you never know when you will be stamped.
What are commodities; how do I find a broker; how much cash do I need to start; does it need good math; how much time does it take to trade everyday; what are the trading term I need to know; is my money safe and most importantly the big question remains: “Is commodity trading for me”. While a commodity is not just about trading but about a whole new career option that is waiting to take off for those who love the idea of making money.
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