With policy initiatives and economic changes boosting entrepreneurship in India, the next two decades will witness more of Gen Z starting out with their own venture. India will be witnessing the rise of a more aspirational and entrepreneurial India
The Rise of Aspirational, Entrepreneurial India
India is the third-largest country to have the most unicorns globally, housing around 47 unicorns. With a string of entrepreneurial success stories, Gen Y has provided a strong inspiration and example to the next generation. Simultaneously, Gen Z is receiving tremendous global exposure at a young age, unlike any other previous generation. The world has come closer via the Internet and digital media. The aspirations have evolved.
Today, more and more youngsters want to do something big on their own and become a part of the start-up revolution. These 11- to 18-year-olds are not only multifaceted and multitalented; they are highly committed and ambitious. And many of them harbour dreams of making it big on their own. They are not looking for employment. Moreover, they are looking forward to being employment generators. The entrepreneurial spirt is much more strongly instilled in them.
With policy initiatives and economic changes boosting entrepreneurship in India, the next two decades will witness more of Gen Z starting out with their own venture. India will be witnessing the rise of a more aspirational and entrepreneurial India. However, while the current learning and development systems in India are providing education and honing skillsets to a greater degree, financial literacy and money management largely remain untouched due to sociocultural reasons.
Financial Literacy takes a Backseat in India
The Indian culture is so rich and evolved that it often juxtaposes binaries together. As a case-in-point austerity as a value is socially appreciated, while wealth is equally celebrated with festivals around it. This highlights the importance of valuing money appropriately. However, socio-culturally, the association with money is frowned upon and often discouraged, especially in student life. For many persisting beliefs and notions, it is only when one begins earning in adulthood that the association with wealth creation and money is justified. The beliefs essentially are not always unfounded. However, in the process, essential understanding and learning of certain life-skills and finance fundamentals usually get forsaken. With little to no conversation on money management & financial literacy between parents and children, or at schools and colleges.
Lacking Money Management Skills – A Challenge
After attaining adulthood, most youth end-up receiving money in the form of salaries which they never learned to manage. Entrepreneurs and those who are employed in leadership positions with responsibilities of managing large budgets, the lack of money management skillsets surface as a personal and occupational challenge. While any professional is adept in essential skillsets related to occupational needs, financial literacy and money management are skillsets required in every facet of practical life. Additionally, money management is not only about financial literacy. It is more about healthy monetary behavior and habit formation, which leads to sound financial decision-making.
The time after formative years of life is crucial for long-term behaviour development. The formative years, usually considered to be the first decade of a child, lays strong foundation of rapid cognitive, physical, social, and emotional development. It is after 11 years of age, through the teens, that children develop advance skillsets, strong inclinations, and long-term habits. With the Indian educational system hardly training kids on money management, Gen Z is missing on essential life-skill needed to navigate the highly complex financial world.
Complexities of 21st Century Financial World
It was in 1996 that India first experienced online banking. Since then, the banking and finance environment has experienced tremendous transformation, with physical financial infrastructure becoming majorly digital catering to daily banking needs. India has travelled from the times of physical banks and credit cards, e-banking, F cards and ATMs to telebanking and mobile banking, e-wallets, and UPI services.
Now people don’t experience a tangible exchange of money but a digital transfer. The realization of spending is far different than what it was earlier. Considering the scenario, the days for handing of small cash and piggy banks have long gone. It is important that the younger generation is habituated to the new digital banking experience and hone money management skills from early years to be successful entrepreneurs tomorrow. In this day and age, it is important that children of today get hands-on with money.
Getting Hands-On with Money Early
Today’s school-going generation needs to learn pocket money management under parental guidance. One of the essential parts of learning money management is to inculcate respect for earning and the means and source of generating funds. Of course, it is important for salaried people. However, it is even more important for entrepreneurs to utilize the funding that they generate wisely. While the dynamics of businesses cannot be compared with pocket money management, the basic attitude towards the utilization of money needs to be set right early on.
Owing to digitalization, it has now become possible for parents to impart hands-on financial learning to kids while monitoring their spending activities. Today, services from fintechs like Fyp has inbuilt secure features in its payment application and child prepaid card facility, which promotes respect for earning, delivers the experience of digital banking and payment card handling, negates the risks associated with physical money, encourages children to analyse spending, and leverages gamification to foster positive financial habits and decision making, with rewards, ranking, and community building. The physical prepaid card if lost cannot be misused as it’s a numberless card and moreover it can be blocked with just one tap from the Fyp app. Additionally to ensure constant engagement Fyp also has a feature called ‘Missions , where parents can assign tasks to the children and on completion the kids are rewarded on the app.
Source: Business World