Financial literacy among youth is becoming increasingly important in today’s world. With the rise of digital currency, online banking, and a variety of investment opportunities, the need to understand how to use money effectively is more important than ever. With this knowledge, young people can gain the skills necessary to make sound financial decisions for their future.
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.
Dipansha Garg of Vivekananda Institute of Professional Studies tells MintGenie in an interview about how she believes that if you invest in the stock market the right way, it could do wonders for your pocket and multiply your money in the blink of an eye. Yet, on the flip side, it is quite risky and could end up bringing you heavy losses. As a third-year BA LLB student, she loves reading books, dancing, and going on treks. She also has a keen interest in trying out new activities and pushing herself to the limit to see what she can achieve.
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?
Money is the means to achieve what you want in today's world. It is the most important materialistic thing that can help you get closer to your dreams. It is a means to make your life easier. The old age saying, "Money can't buy happiness" holds little value now in today's time, as money has become an indispensable part of one's life. It is not the most important thing but definitely a factor I consider while making important life decisions. It holds considerable value alongside career growth, interest in the field, and the importance of the study in the future part of one’s life.
What do you spend your money on every month at the moment? Can you give a breakup in percentage terms?
The 80% of the money is typically split between shopping for clothes, accessories and other items that may be needed, as well as going out with friends to eat or catch a movie. The remaining 20% is saved for special occasions such as parents’ birthdays, anniversaries, holidays, or any other meaningful event. In some cases, a portion of this money may be put aside to go on trips with family or friends.
What are the things you want to spend money on?
I want to spend money on things that would have long-term benefits, like investing in the stock market or building a savings account. I follow the 50/30/20 rule, which divides my income into three categories: 50% for needs, 30% for wants, and 20% for savings. Additionally, I would like to fund my own dance classes and be able to spend my own money on a trip.
Do you save money? If yes, how frequently and what do you do with this money?
At the moment, I am dependent on my parents and do not have any source of income. However, I try to save the money I get as monthly allowance, as I know saving is imperative for having a secure financial future. It is difficult to manage as certain events take most of my allowance. At the end of the month, if I manage to save enough, I treat myself by going on a shopping spree or buying gifts for my parents and also save some for the rest of the year.
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?
For me, having a job means being an asset to the country and being a helping hand by contributing to the income of the family. It means being able to stand on my own feet and be independent enough to make my own decisions and take hold of my life. The deciding factors would be the work culture and environment, as well as the salary/perks I'd get. I would prefer an environment that puts women on equal footing with men and gives equal opportunities.
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?
For what I believe, if you invest in the stock market the right way, it could do wonders for your pocket and multiply your money in the blink of an eye. Yet, on the flip side, it is quite risky and could end up bringing you heavy losses. Alternatively, opening a bank savings account would be a safe place for your money to multiply, but at a much slower pace. Personally, I would prefer the latter.
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 have very little knowledge about investments right now, but I am trying to learn as much as I can by observing my parents who actively invest in crypto and stock markets. Even though I am not deeply invested in learning about the stock market at this time, I plan to take it up in the future.
Do you follow social media influencers and follow their investment advice?
The world has moved into a culture of learning new things from various sources, so yes, if you follow the right people, you can learn how to budget and invest your money wisely based on their own experiences. Additionally, I believe, there are many financial education websites available online that provide reliable advice and resources on topics such as budgeting, investing and managing debt. By utilizing these sources, you can gain a better understanding of how to use your money more effectively.
Do you talk to your mother or your father about money and learn from them or follow their advice?
My parents often tell me stories from their childhood about money, which has enabled me to understand its value from a young age. I strive to apply as much of their wisdom as possible in my own financial decisions.