Financial literacy is an incredibly important tool for students to have as they enter adulthood. With the increasing cost of higher education, it's more important than ever that students understand the basics of finance and know how to make their money work for them. Investing in financial literacy now will pay dividends later, giving students the tools they need to achieve their financial goals and live a financially secure life.
Ekagrata Kalra of Vivekananda Institute of Professional Studies tells MintGenie in an interview about how she believes that while social media influencers may have a large following and present themselves as experts, it's important to remember that they may not have the same level of knowledge and expertise as professional financial advisors and investment managers.
As a penultimate-year law student, she has many interests outside of the classroom. She is an avid reader and enjoys delving into books on a wide range of topics. Additionally, music plays an important role in her life, and she finds solace in listening to a variety of genres.
Edited Excerpts:
What does money mean to you? Is it the most important factor when it comes to your life decisions like what to study, career and so forth?
For many people, money is an important factor in their lives because it can provide security, freedom, and opportunities. Money is a means to obtain goods and services, and it can also be a measure of success and social status.
When it comes to life decisions, such as what to study or what career path to pursue, money can play a significant role. People often consider the potential earnings of a profession when deciding what to study or which career path to take. However, it's important to note that money shouldn't be the only factor to consider when making these decisions. Other factors such as personal interests, skills, and values should also be taken into account.
Overall, money is an important aspect of life, but it shouldn't be the only factor considered when making important decisions. It's important to strike a balance between financial considerations and personal fulfillment in order to lead a meaningful and fulfilling life.
What do you spend your money on every month at the moment? Can you give a breakup in percentage terms?
As a college student, I do not have significant responsibilities at this point in my life. I allocate approximately 20-25% of my funds towards transportation (including gas, public transit, and car maintenance), 40% for entertainment such as movie nights, concerts, and other leisure activities, 30% for investments, and 5-10% for miscellaneous expenses and emergency funds.
What are the things you want to spend money on?
As a student, I have a few things that I would like to spend my money on. Firstly, I would love to travel and explore new places during my breaks from college. There are so many different countries and cultures that I would love to experience, and I believe that traveling can be an excellent way to broaden my horizons and gain new perspectives.
In addition, I have a few hobbies and interests that require some funding, such as music and art. I would love to purchase new instruments and art supplies to improve my skills and create more meaningful work.
As a college student, I understand the importance of education and investing in my future. I would like to attend some training programs and workshops to enhance my skills and broaden my knowledge.
Do you save money? If yes, how frequently and what do you do with this money?
I try to save money whenever I can. I usually set aside a portion of my income each month into a savings account, which I keep separate from my spending money. I try to make saving a regular habit, and I aim to save as much as I can without compromising my needs and wants.
When I save money, I usually have a few goals in mind. For instance, I may be saving for an upcoming trip, or I might be setting aside money for a special event or purchase. Additionally, I believe that it's important to have an emergency fund in case unexpected expenses arise. Having this fund can help me avoid going into debt or feeling stressed about my finances.
Overall, I believe that saving money is an important habit to cultivate, especially as a student who may have limited income and resources. By saving, I can work towards achieving my goals and build a strong financial foundation for my future.
What does having a job mean to you? What are the top two factors you will want to think about when deciding a company to work for?
Having a job means having the opportunity to gain work experience, earn an income, and develop new skills. When deciding which company to work for, there are two primary factors that I would want to consider.
Firstly, I would want to ensure that the company aligns with my values and goals. For example, if I value diversity and inclusivity, I would want to work for a company that promotes these values in its hiring practices and corporate culture.
Secondly, I would want to consider the opportunities for growth and advancement within the company. I would want to work for a company that values professional development and provides opportunities for employees to take on new challenges, learn new skills, and advance in their careers.
What do you think about investing your money? If you have a certain amount of money set aside, will you want to invest it in the stock market, mutual funds, or do you just keep it in your bank savings account?
I think that investing my money can be a good way to build wealth and achieve my financial goals over the long term. However, I also recognize that investing comes with risks and requires careful consideration and planning.
If I have a certain amount of money set aside, I would want to explore different investment options and assess the potential risks and rewards of each. For example, I might consider investing in the stock market or mutual funds, which offer the potential for higher returns but also come with risks of volatility and loss.
Ultimately, my decision would depend on factors such as my financial goals, risk tolerance, and current financial situation. As a student, I believe that it's important to do my research and seek guidance from trusted sources before making any investment decisions.
I would want to educate myself on the different investment options available and work with a financial advisor or investment professional to develop a sound investment strategy that aligns with my goals and values.
Do you think you have an understanding on how to save and invest? If yes, how did you learn? If not, are you trying to learn?
I believe that I have a basic understanding of how to save and invest, but I know that I have a lot to learn in order to make informed and effective financial decisions.
To start with, I learnt the importance of saving money from my parents and through my personal experiences. I have tried to develop the habit of setting aside a portion of my income each month into a savings account, which has helped me build a sense of financial security and plan for the future.
When it comes to investing, I have some basic knowledge about different investment options such as stocks, mutual funds among others and I actively try to invest in such options.
However, I recognize that there is much more to learn in order to make informed decisions that align with my financial goals and values. Therefore, I am actively trying to learn more about personal finance and investing through various sources such as books, podcasts, and online resources.
Do you follow social media influencers and follow their investment advice?
I do follow some social media influencers, but I am very cautious about following their investment advice blindly. While some influencers may have valuable insights and knowledge, I know that there are many risks associated with blindly following their advice, especially when it comes to investing.
I believe that investing is a complex subject that requires a deep understanding of finance, economics, and market trends. While social media influencers may have a large following and present themselves as experts, it's important to remember that they may not have the same level of knowledge and expertise as professional financial advisors and investment managers.
I also keep in mind that no one has a crystal ball to predict the market, and that past performance doesn't guarantee future results.
Do you talk to your mother or your father about money and learn from them or follow their advice?
I do talk to both my mother and father about money and learn from them. My parents have been a great source of financial guidance and have provided me with valuable insights and knowledge about personal finance and investing.
I have learned a lot from their personal experiences and their financial successes and mistakes. They have taught me about the importance of budgeting, saving, and investing, and have also shared their own investment strategies and advice with me.
However, I also recognize that personal finance is a complex subject and that there is always more to learn. Overall, I feel very grateful for the financial guidance and support that I have received from my parents. Their guidance has helped me develop healthy financial habits and make smarter financial decisions, which will benefit me both in the short and long term.
