Holistic Approach in Planning for Personal Financial Management: Indian Scenario
16 Pages Posted: 13 Jul 2020
Date Written: June 21, 2020
Abstract
Some 25 years ago an elderly person used to manage financial affairs for the whole family and was responsible for satisfying everyone’s needs and requirements. However, today in the privatized, globalized and liberalized Indian economy, the social change from single bread-winner families to dual-career, dual-income families are increased.
Concepts relating to saving, investing, taxes, spending, and borrowing are not clearly understood even by educated leave alone poor and illiterate ones. Today, the hour of the need is for every earning individual to think, plan, and act on securing their financial future. Rising costs of healthcare, increasing life expectancy, lifestyle, uncertainty, increased market volatility, and complex investment products make it essential to have a fundamental understanding of personal finance subjects (Sobhesh Kumar, Et., al, 2013).
Per Wells Fargo Wealth & Investment Management, USA (2019) a survey interview on retirement (3918 individuals) research finding point to a need for better preparation — not to work harder, but to work smarter. Hence, greater efforts from the various stakeholders needed to improve the current state of play and to ensure that the embedded benefits of personal financial planning are far-reaching.
Keywords: Personal financial planning, financial literacy, financial inclusion.
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