Why there is a need for Financial Literacy?

Just like the consumer awareness, the financial awareness has also become very important and essential in todays world of liberalized global economy where investors need to be properly guided about informed choices in the field of financial products and services in the market. A large chunk of Investors in our country are still not wise enough to invest their hard saved money into a valuable instrument yielding a profitable return countering the inflationary trend of the currency in our economy. It is quite surprising that still many financial instruments available in the Indian market promise very high returns where innocent and uneducated investors get entrapped and even lose their principal amount. Our society has correctly visualized this problem of investors and has started educating this lot of investors and thus spreading financial literacy among them so that they should be protected from being exploited from clever market traders. Even the prime minister has also realized the difficulties of such investors and has initiated a very popular scheme by the name of Jan-Dhan-Yojna in which small investors money will be parked in banks, who thereafter will invest the same money in the national economy thereby accelerating the growth of economy as well as safe guarding the return on investment of poor people. Our society is strong supporter of this idea and in spreading financial literacy; we are aiming to recommend this scheme among poor people which will definitely help them in getting safe and better return on their investment.
Besides the above, a new generation of middle income group has started investment in various risky instruments without proper financial planning thereby putting themselves under great strain during any emergency or mis-happening like break down of relations, bereavement in the family etc. Moreover, due to unstable market conditions and fast changing tax structure need for spreading financial literacy and systematic financial planning has become the need of the time and society for financial literacy and consumer awareness will play an important role by educating this new and powerful class of investors by holding seminars and debates. Our society will empower the investor as it gives them an understanding of how to manage their finances in the real economy in order to avoid unnecessary risks, excessive debt and possible financial exclusion. Moreover, it enables people to improve their understanding about various financial  products and services.