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How frequently do we pause to consider our connection with money? Despite living in an increasingly digital and fast-paced financial environment, a sizable proportion of Indians still lack fundamental financial knowledge. According to polls, more than 70% of Indian adults are financially illiterate, which results in poor financial decisions, growing debt, and missed savings chances.
On this National Financial Awareness Day (August 14, 2025), it’s time to highlight a critical life skill: financial literacy. Whether you’re a student, a working professional, or a retired senior, learning the fundamentals of money management can help you construct a more secure future. This article is a basic guide to developing “Rupee Sense”—a common-sense understanding of money—that is appropriate for all age groups.
Financial literacy refers to the information and abilities required to make sound financial decisions. It covers budgeting, saving, investing, understanding interest, debt, insurance, and retirement planning.
In layman’s terms, it’s understanding how to make your money work for you rather than you working for it your entire life.
It isn’t about being wealthy; it’s about being smart with what you have.
Children (6-12 years old)
It is never too early to teach children about money. At this point, keep things fun and interactive:
Use piggy banks to promote saving habits.
Give little allowances and let them choose whether to spend or save.
Play board games like Monopoly Junior or download mobile apps that imitate earning and spending.
Teach them the difference between needs and wants.
Teenagers (13-19 years)
This is a vital time in shaping future financial behaviour:
Encourage budgeting for pocket money or part-time earnings.
Open a student bank account and teach them how to use UPI or digital wallets responsibly.
Introduce the concept of earning money through side gigs, freelancing, or summer internships.
Educate them about the perils of reckless online purchasing and credit traps.
Young Adults (20–35 years)
This group often enters the workforce and makes important financial decisions:
Understand your salary structure (CTC, take-home, PF, and TDS).
Set a monthly budget and stick to it.
Create an emergency fund (3-6 months’ costs).
Begin investing early with SIPs in mutual funds, and understand the fundamentals of the stock market.
Get health and term life insurance as early as possible—premiums are lower while you’re young.
Begin retirement planning—consider EPF, NPS, or PPF.
Middle-aged adults (36–55 years)
This group frequently bears the financial load of a full family:
Re-evaluate your financial goals, such as your children’s schooling, home loans, and retirement.
Diversify your investments in equity, debt, gold, and real estate.
Ensure you have appropriate insurance (health, life, and accidental).
Prepare a will and amend your nominations.
Begin tax-efficient planning to lower liabilities.
Senior Citizens (56 years or older)
At this point, the emphasis should go to safety, stability, and legacy:
Prefer low-risk, income-generating investments such as Senior Citizen Savings Scheme, fixed deposits, or annuities.
Be wary of online frauds; always use verified apps and websites.
Consolidate financial paperwork and keep the family informed.
Budget for healthcare costs and long-term care insurance, if necessary.
Ensure your estate is in order, including nominee information, will registration, and asset lists.
You can learn and grow at any age. Here are some easy things anyone can do:
Read financial books like Rich Dad Poor Dad or visit reputable finance blogs.
Listen to Indian finance podcasts such as Paisa Vaisa and Millennial Paisa.
Use financial apps such as Groww, ET Money, or Walnut to keep track of your expenses and investments.
Attend free webinars or local workshops, which are often provided by banks or the government.
Establish a monthly budgeting habit— Just putting down your income and expenses might tell a lot.
Discuss money openly with your family; normalise financial conversations at home.
On August 14th, take one step: establish a SIP, limit your expenses, or teach your child to save. Rupee Sense starts with you.
Becoming financially literate does not happen overnight—but it all starts with a single step. Taking tiny steps, such as training your child to save rupees 10 or starting your first SIP, can lead to long-term financial success. Financial literacy is more than just a skill; it is the foundation for liberty, security, and peace of mind.
This National Financial Awareness Day, let this message from Adv. Abdul Mulla, founder of www.asmlegalservices and www.lifeandlaw.in, motivates you to take control of your money. With years of legal and financial experience, he continues to help clients make informed decisions that protect their wealth and rights.
Adv. Abdul Mulla (Mob. No. 937 007 2022) is a seasoned legal professional with over 18 years of experience in advocacy, specializing in diverse areas of law, including Real Estate and Property Law, Matrimonial and Divorce Matters, Litigation and Dispute Resolution, and Will and Succession Planning. read more….
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