From the questions (41-47)
Financial Inclusion is the buzzword today. There are several ways in which the regulators are trying to achieve this goal. Industry is also playing its role in achieving the mission. While there are regulatory and business issues in attaining this objective, financial awareness is a critical element in meeting this goal that needs serious attention. When we talk of inclusion, we are talking of those who are currently not even included in the system but what about the small percentage which does have a pie in financial savings. Do they also sufficiently understand the appropriate ways to save, invest, insure and financially secure their future? From what we observe around us and the number of issues that keep arising, the answer is a clear 'No'.
While some of us may be aware of the need to invest, it is "what and where", which becomes a roadblock. Awareness on need to save and insure should start early in life. How do we do this? Most importantly financial literacy should begin at school stage so that children are aware of this important concept at an early age which can help them influence their families on importance of savings and insurance as also enable them to start saving and insuring at a much younger age. Just as we learn about basic concepts of science, maths, history, language etc. at school, similarly financial awareness and education should be made a part of school curriculum. It is important to understand the concept of financial literacy and its appropriate components. Financial literacy refers to the knowledge required for managing personal finance. It encompasses an understanding of how to use credit responsibly, manage money, minimize financial risks and derive long-term benefits of savings. The methodology of imparting this message should be effective and interesting enough to draw the attention of the child to this complex but important aspect of life. It should be taught in a manner that it becomes a part of our culture. They should be encouraged to have a piggy bank for small savings and be also able to appreciate the miracle of compounding. The child in school must also learn that his parents need to save to maintain a certain standard of living in their old age and provide for appropriate level of education for their children, have to be appropriately Ensured to protect their lives from any uncertainty, have health insurance cover to meet the medical expenses in case of contingency, and need to stay debt free.
Which of the following is/are true as per the given passage?
A. Regulators have ignored the issue of financial inclusion and even now there are hardly any efforts made to promote the same.
B. Investing in insurance is highly risky and must be avoided as much as possible.
C. Concepts of financial aware-ness must be made interesting if they are to be imparted at school level.
