Financial literacy is low within each of the five generations—the Silent Generation, Baby Boomers, Gen X, Gen Y, and Gen Z—but is the lowest among Gen Z. As per a recent study conducted by the Securities and Exchange Board of India (SEBI), only 27% of the Indian population is financially literate.
Financial literacy is generally highest among those aged 80 to 55. Financial literacy in Gen X, Gen Y, and Gen Z is poor. Although Gen Zs have the lowest levels of financial literacy, the results show that Gen Xs face the biggest financial challenges.
These results indicate that people generally enter adulthood with a low level of financial literacy, and although it increases over time, financial literacy nonetheless tends to remain low. In addition, financial well-being between generations tends to be more compromised among people with lower levels of financial literacy.
The COVID-19 pandemic has highlighted the importance for Indians to enhance their financial knowledge, and many people feel motivated to concentrate on their financial literacy. This sentiment is more common in younger generations, with Gen Z, Gen Y, and Gen X being the most concentrated.
The number of Indians who are not financially literate, particularly younger generations, is a major concern. Until financial literacy is delivered in schools, colleges, and workplaces, we will continue to see generations of adults facing financial challenges.