It is important for young people to understand their financial situation and be able to make informed decisions about the money. Without a basic understanding of finance, the youth today might struggle to plan for the future or manage their spending. Financial literacy can help them make wise investments, properly budget, and save for retirement. It would be easy to agree that financially literate youth are better equipped to navigate the challenges of adulthood and pursue their goals.
In order to comprehend what money means to today's youth in a growing world, this series explores students and young working professionals and their perspectives on money and finance.
Vibhuti Gupta of the University of Delhi tells MintGenie in an interview about how she has grown interested in the stock market over time and continues to learn about its history and principles through various sources. As an economics student, she has varied passions, ranging from art, to reading books, dancing, and singing.
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?
If we go by the literal definition, money is an authorized medium of exchange for various goods and services in an economy. Similarly, in my opinion, it is the medium to buy goods that fulfill my needs and wants. It is a very powerful commodity as it can buy anything you want at this point in time. It might not be the most important factor but, is definitely, a key factor that is considered when making decisions about education and career.
Since the budget announcement is around the corner, what do you think are the expectations of today's youth from the government?
Today's youth look to the government and its financial decisions to spend more in digital literacy so that everyone has access to fundamental digital skills and to enact stricter rules for safety and privacy. In order to reduce migration, we also want more policies and laws that promote employment growth. The current generation of youngsters is particularly inclined toward mental health and would want to see more initiatives in this domain.
What do you spend your money on every month at the moment? Can you give a breakup in percentage terms?
As a college student who lives with her parents, I don't have a lot of expenses. Most of my money, roughly around 60 percent is spent on books, stationery and occasionally going out with my friends. Around 15 percent is spent on traveling from my home to college and the rest is saved.
What are the things you want to spend money on?
Besides spending money on basic necessities like food and clothes, I would like to spend it on things of interest like art supplies and going to different museums, as this can be covered by my allowance. If I start earning, I would like to spend it on traveling and collecting art pieces.
Do you save money? If yes, how frequently and what do you do with this money?
Yes, I do save money. I feel it's important to save money as it prepares you for unexpected expenses that may come in the future. Usually, some of my money is spent on gifts for my friends or family.
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, for me is related to independence. To be financially independent and standing on my own feet is my top priority. I also feel that having a job and working would help me grow as a person and understand my responsibilities better. The top two factors that I will consider when deciding on a company to work for are the work environment of the company and the salary offered.
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 investing money is very important. Everyone in their life at one point or the other do invest their money be it stock market, mutual funds or bonds. Considering my age, it's a time when I can take risks and so with the money set aside, I would invest the majority of my money in the stock market. I also positively think about investing in real estate, government schemes and mutual funds and after a certain age in bonds also.
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?
Although I am intrigued, I do not currently have the knowledge necessary to save and invest. I've grown interested in the stock market, so I'm taking an online course on its history and principles in addition to trying to learn about investing and saving from my father.
Do you follow social media influencers and follow their investment advice?
No, I don't follow any social media influencers nor follow their investment advice as social media is not what it seems. So, I try to gather my knowledge from more reliable sources.
Do you talk to your mother or your father about money and learn from them or follow their advice?
Yes, I do talk to my mother and father about money and learn about saving and investment from them. My father also invests in the stock market and mutual funds and teaches me about them so I can be more prepared for the future.