Financial literacy is a crucial life skill that helps individuals manage their money wisely, make informed financial decisions, and avoid debt traps. However, in India, financial literacy remains significantly low, leading to widespread financial mismanagement and distress. The absence of structured financial education and awareness results in individuals and businesses making poor financial choices. Below are some key ways in which the lack of financial literacy affects people and leads to financial struggles.
Many small businesses in India operate without proper bookkeeping or financial records. Owners often do not maintain accounts, leading to cash flow mismanagement. Without a clear understanding of their profits, liabilities, and expenses, they tend to take on unnecessary debt, often without realizing the…
