Role Of CFP® In Bridging the Financial Literacy Gap in India | EduPristine

Welcome back, readers, to another insightful blog post! Today, we’ll be discussing an essential topic: The Role of Certified Financial Planner (CFP®). in Bridging the Financial Literacy Gap in India. In this post, we will explore various aspects such as an overview of the financial literacy scenario, the importance of financial education, the challenges in improving financial literacy, and the significant role that CFP® professionals play in closing this gap. To wrap it up, we’ll also take a closer look at theCFP® certification offered by EduPristine and how it equips individuals to contribute meaningfully to this cause. Let’s dive right in!

     

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Overview of Financial Literacy in India

Financial literacy is the ability to grasp the financial component and skills such as personal investing , finance management, budgeting,etc. When one doesn’t possess these skills or even knows about any of these skills they are termed as financially illiterate. If all you have is bank deposit accounts, your financial literacy is rudimentary; if you also have credit or debit cards, it is moderate. Using cards, e-wallets, and deposit accounts are indicators of advanced literacy. In India, a third of the population is financially illiterate, with 42.8% having elementary financial literacy, 20.8% having moderate financial literacy, and just 4.2% having advanced financial literacy.

Importance of Financial Literacy

1. Optimal Decision-Making:

Individuals that are financially literate or take help from financial professionals can manage their finances by making informed financial decisions and can avoid unnecessary debts. Individuals who possess knowledge about various financial tools or are financial experts can evaluate the options of credit cards, loans, insurance and much more that suit them the best. By doing this an individual can be financially secure and can be less exposed to scams.

2.Better Financial Arrangement:

When an individual is financially literate or takes advice from a financial professional their planning about their financial situation gets better. They get better at setting realistic goals, creating budgets, tracking expenditures etc. Moreover, this arrangement or financial planning helps individuals with saving regularly, building emergency fund, planning for retirement, etc. leading to better analysis about the financial markets, capitalize on opportunities and achieve stability on a long-term basis.

3.Empowerment of Entrepreneurs:

India’s small business sector is flourishing. Being financially literate is important in this situation because it makes it easier for the person to comprehend the challenges involved in launching and maintaining a firm. Acquiring expertise in cash flow management, financial statements, investment opportunities, financial markets, and other related financial domains is vital as it facilitates the acquisition of money and allows for the exploration of development and expansion prospects.

     

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Challenges in Financial Literacy in India

Even though financial literacy provides many advantages and potential, several problems should be solved.

• One of them is the physical access to financial education since many respondents reported not having a financial education program in their community, or because due to financial constraints, or distance, they could not attend the programs.
• Also, financial literacy decreases due to the growing number of products in the financial market, thus, people make wrong decisions involving services such as insurance, investment, and loans.
• However, the main challenge is the shortage of funds and human and financial capital to develop and deliver effective financial education.

   

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• However, a number of behavioral factors are there, they include overconfidence, loss aversion and present bias which makes people with a little knowledge on financial literacy end up making wrong decisions.
• Finally, and importantly, the general absence of affordable and appropriate, transparent, and effective financial regulation across products and services that are broadly available to the public means that consumers often are exposed to fraudulent activity, misinformation, and poor decisions, all of which contribute to the challenges faced in the journey toward developing sound financial literacy.

Role of CFP® Professionals in Bridging the Gap

• Education and Awareness

  CFP® Professionals educate individuals about investing, personal finances etc. and raise awareness by conducting seminars, workshops related to financial literacy campaigns. This education and awareness leads to transfer of importance about financial literacy, the products available.

• Holistic Financial Planning

  CFP® Professionals expertise in retirement planning and tax planning which leads to helping individuals in need for the same. From advising about wealth management, minimizing tax, providing tailored financial advice, providing strategies to achieve long-term goals and what not CFP® Professionals provide a holistic approach to financial planning.

• Working with Underrepresented Groups

  To promote financial literacy, CFP® professionals now concentrate on women, those living in rural areas, and customers with modest incomes. They do not keep these underprivileged groups in the dark about what is needed to help them escape the financial crisis because they recognize the struggles these groups face in achieving their fair place in society. Thus, enhancing these communities means supporting their efforts to close the wealth gap, at least within the framework of the CFP® professionals themselves.

EduPristine Offering The Certified Financial Planner (CFP®) Course

EduPristine has newly launched the CFP® Certification Course. EduPristine, an Authorized Education Provider (AEP) of FPSB India , offers comprehensive training for the CFP® Program. EduPristine provides exclusive study material offered by the Financial Planning Standards Board (FPSB). EduPristine provides Classroom Training (in Mumbai) & Live Virtual Classes (Online) so the students can learn according to their comfort, and it is at no extra cost. The faculty here is top-notch, which means we have industry experts to teach. Along with that a learner has 24/7 access to the Learning Management System (LMS). Not only does EduPristine help with technical skills and various other accounting & finance courses but also, we provide soft skills training and career support services post exams.

     

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      Conclusion

Here we come towards the end of this blog post. By now if you are eager to know about the CFP® Certification you can click on the hyperlink here. If you’re interested in how our courses have made a difference, take a look at the testimonials that highlight their impact. You can reach out to the team about any queries regarding CFP® eligibility, CFP® course syllabus, CFP® course fees and much more by clicking on the handles below. Until then Keep Learning, Keep Growing.