Financial Literacy – Problems and Challenges

Financial literacy has gained importance for country like India where literacy rate is low and people in rural areas are still out of access of basic financial set up and services. The financial market has been dramatically changing after liberalization and has been offering several opportunities not only for investor but also for the corporate. Today financial services are becoming more accessible, financial market offers myriad of products with intricate features and services, leaving many people ill equipped to cope up with the sophisticated financial needs. The economies around the world have increasingly considered financial literacy as a key pillar for the development of their financial system. This study depicts the financial literacy and its problems and challenges the ability to process financial information and make informed decisions about personal finance which has received growing attention in the developed markets and, emerging markets as a potentially important determinant of household well-being.