| Understanding how to manage money, use credit | | | | individual styles and build effective content. |
| responsibly, maximize our investments and minimize | | | | 4. Design and use of activities, games, videos and |
| our expenses is not something we do with a lot of | | | | case studies |
| enthusiasm. In fact it is a frequently avoided issue. If | | | | Based on the three steps above, this is the crux of a |
| we are asked to rank taking informed financial | | | | good program. A lot of effort has to go into |
| decisions in our priority list, I am sure it will rank | | | | designing these activities, games, videos and case |
| somewhere last in the list. Even though money is | | | | studies to make the learning interesting, useful and |
| somewhere top in our importance list. | | | | effective. |
| That's why; a workshop on financial literacy (where | | | | B. Financial Literacy Policy support |
| the Union Finance Minister was present along | | | | The Government has an important role in policy |
| with Governor, RBI, and its Deputy Governors and | | | | formulation and providing a framework where the |
| the OECD Deputy Secretary-General Ambassador) | | | | financial literacy efforts can take roots and prosper. |
| was of interest to me. | | | | Here's a starting list which can get this gigantic |
| You cannot argue against the need of spreading | | | | project off the ground: |
| financial literacy. But I have a few basic questions | | | | |
| that need to be answered at the planning stage for | | | | 1. Financial Literacy month: Let us have a widely |
| any policy: | | | | celebrated Financial Literacy month to get started |
| | | | with. March is too late as it is the end of the financial |
| 1. How do we achieve greater financial literacy? | | | | year and April is the beginning. Can we have |
| 2. How do we measure the success of the | | | | September as the Financial Awareness Month? |
| programs? | | | | 2. Competition for training program design: RBI and |
| 3. How does a public policy on financial literacy help? | | | | other Regulators like SEBI & IRDA do have a financial |
| I did not attend the high profile workshop where | | | | education portal. But as I mentioned earlier, a |
| issues like the above must have been discussed. | | | | complete training programme needs to be designed |
| However if I was asked to share my views on the | | | | for this purpose. Can we have a national level |
| subject, I would present those under two heads: | | | | competition for the best training programme design |
| One, Training Program design and two, Policy | | | | among our talented HR Consultants and Trainers? |
| support. | | | | 3. Awards for best corporate implementing the |
| A. Training Program Design: | | | | training program: After the training program is ready, |
| The weaknesses of financial decision making are | | | | they need to be implemented across the country. It |
| universal and afflict everyone. But the solution for me | | | | may be a good idea to involve the Corporates to |
| is different from the solution for you and is unique | | | | help their employees make better financial decisions. |
| for everyone. That's why; designing the financial | | | | After all, this may lead to better employee |
| literacy training program is not an easy task. | | | | engagement for the Corporates. The Corporates |
| Remember that our money competencies do not | | | | who run the best financial literacy drive in their |
| just depend on our knowledge but also depends on | | | | company can be recognized and rewarded. |
| our various skills and attitudes. For example, a | | | | 4. Awards for the best educational institute (schools, |
| Professor of Finance may know a lot about investing | | | | colleges, professional institutes) for implementing the |
| but doesn't have the risk appetite or an aptitude, | | | | training program. This will help in taking this topic |
| may still be making bad financial decisions. | | | | more seriously by the educational institutes and get |
| The program design will have the following elements. | | | | the students started on the learning trajectory. |
| 1. Identification of required knowledge, skills and | | | | 5. Awards for the best trainers imparting the financial |
| attitudes to make better decisions. | | | | awareness program will help in recognizing significant |
| To start with, we need to identify the best practices | | | | effort by the individual trainers. |
| for good money management. The knowledge part | | | | 6. Empanel Trainers/Consultants/ NGOs: A directory |
| may be easy to identify. But we also need to | | | | can be created by the Government about the |
| identify the money management skills like risk profiling | | | | NGOs, Trainers and Consultants who are willing to |
| and asset allocation decisions. We also need to | | | | work in this area. |
| articulate the attitude required for taking optimum | | | | 7. Project Champion: Even when all of the above is |
| financial decisions. | | | | put in ink, we need a passionate leader who can |
| 2. Classification of target audience according to | | | | drive the change. He/She needs to have the full |
| demographics as well as geographic classification | | | | authority from the Government, be an able |
| This can be done to understand the adult learner; | | | | Administrator while being passionate about the |
| design programs around personal preferences of | | | | project. Somebody like Nandan Nilekeni. |
| learners; | | | | For implementing the financial literacy project, it is |
| 3. Identification of teaching techniques for various | | | | important to recognize the various stakeholders who |
| types of learners. | | | | can contribute in this gigantic project. And the |
| Individual learners have preferences for audio, visual | | | | Government will do well to empower them to do |
| and kinesthetic style of learnings and a combination | | | | their best. |
| of the styles. The training design need to factor the | | | | This is in continuation to my earlier post. |