It is very important to tell today’s youth that if they are working in private institutions, then they may have to take retirement till the age of 50 because do not forget that due to increasing mechanization and increasing digitization day by day There will be constant threat to jobs and those working in government institutions will not have the help of pension.
This question is not as complicated as it actually seems. It seems complicated because we never try to solve it or say that lack of proper guidance or ideological brainstorm does not compel us to think in that direction. While the government wants to encourage small and medium-sized businesses by talking about Aatmanirbhar Bharat and Vocal for Local, the constantly decreasing interest rates are signaling to investors that If inflation is to be dealt with, then there will be no choice without coming into the mainstream of the market. In such a situation, it is very important to explain to the younger generation how they should step into the world of investment and why.
Let us first focus on the ‘WHY’ part : In the last 25-28 years, the way of spending of ordinary Indian people have changed completely. Today people in villages, towns or cities, small or big, do not shy away from using credit cards or payment apps, and this is the reason that most of the big online companies have huge number of buyers from small cities and these number of buyers are growing rapidly. Society has undergone a radical change in this context. But when it comes to investment, in the absence of proper guidance, many people either invest in the old pattern or follow the herd mentality and invest in more risky investments than necessary.
And there are many people in this young generation whose parents made a lot of money in the early 2000s through hard work, in their jobs or in businesses, but in this rat race of life, their children got the money they earned very easily. Forgetting to explain, many parents made a habit of fulfilling every legitimate or nonlegitimate demand of their children as soon as they asked for anything, the biggest reason for this was that people born between 1965-75 did not get things so easily from childhood to young age and when these people started getting more money than expected in the first decade of 21st century, they left no stone unturned to make things easy for their children. But the result of this was that the children who came to the age of 22-25 today became very difficult to understand how to curb their expenses in the difficult circumstances faced by the arrival of Corona. I know many young people whose phones are much more expensive than their parents’ phones. It would not be an exaggeration to say such habits were instilled in children by their parents. Sometimes in order to show off in the world, sometimes due to time constraints, sometimes in order to get rid of them, these parents used to provide expensive things to their children.
Still it is not too late: I believe that if the children are made aware of the value of money from their teens in playful way and explain the difference between need and desire, then the circumstances in the future for them will not be difficult. If you start putting investment related rites from the age of 18 to become a Aatmanirbhar investor, then that youth can become a sensible investor till the age of youth i.e. the first salary.
If a child of 18 years of age can open an account in a bank, it may be worth keeping a PAN card, then it is the duty of the parents to make them aware of the investment and even if they start with 100 rupees a month that would be a good investment habit and if they do it through their pocket money then it is even better, and so what if the start is with Bank RD or PPF. Then slowly introduce them to investment related literature so that they can become financially literate. If they go out with their parents and insists on spending money against their wishes, then parents should ask them to spend from their pocket money, then see if the habit of extravagance comes down or not.
Confronting the truth: It is very important to tell today’s youth that if they are working in private institutions, then they may have to take retirement by the age of 50 because do not forget that due to increasing mechanization and increasing digitization day by day There will be constant threat to jobs and those working in government institutions will not have the help of pension. And due to increasing average age, people will live longer. It means they will have less of job years and more years without job. Due to time constraints, it is very important to get into the habit of starting investment as soon as possible and try to get financial freedom as soon as possible and reap the benefits of compounding. Take advantage of this and take the first step towards making Aatmanirbhar Investors. Always remember ‘Shubhasya Sheeghram’