Demystifying financial literacy for common man

D. M. Deshpande
‘Vittiy Sakshartay’, a book in Konkani by Vaman Naik on financial literacy is a pioneering effort to popularise financial knowledge among the masses in Goa. It is a comprehensive exercise that covers the basics of personal finance. Divided into eight chapters, the book offers insights into savings, financial markets, and government schemes.
Since the world of finance is intricate and inherently complex, the author needs to be commended for using a simple language with suitable and practical examples. He has avoided the temptation to rely exclusively on Konkani terms /words. The objective is to make the comprehension easy and simple.
The book could be used both by individuals and institutions of various types. It would specially serve as a base for higher learning, whether a degree, or a diploma, for students who opt for Konkani as a medium of instruction.
This book stands out, in my view, for creating awareness and cautioning readers about several scams. Even to this day, several individuals are trapped by phone calls, videos and by opening a fraudulent link sent by SMS or mail. The timing of the book release couldn’t have been more opportune as the rapid rise of digital scandals have only added to the woes of vulnerable groups. The author explains the ‘digital arrest’, a method whereby several persons have been forced to part with their hard earned savings.
This book also deals with banks and all details of account types, interest rates, credit cards, central banks-functions, nationalisation et al. In all three chapters in the book-chapters 2,4, and 6 are devoted to banks which is perhaps a bit lopsided. Strictly seen from depositors point of view, banks have yielded ground to mutual funds and stock markets.
The author has dealt with the basics of stock markets and investment in various securities. This is welcome in terms of creating awareness even as there has been a rise in D Mat accounts. There may be differences of opinions on the depth of coverage of stocks and trading in a book on financial literacy of this type. A preliminary book on finance perhaps may restrict the discussions to cash transactions instead of going technical with all complexities. Futures markets and derivatives, for example, are risky instruments that even the well versed in stock markets will think twice before investing. Even regular trading (spot, cash or delivery based) too is transforming with the use of algorithms and AI. Yet the book could have drawn the attention of the readers to the enormous risks involved in futures’ trading. Studies have shown that youth have taken to such methods lured by small margin money and prospects of making a fast buck. In some extreme cases, huge financial losses have led to suicides, especially again, among younger age groups. The regulator, as a result, has recently increased the margin money required for futures’ trading.
As a practical guide, the book is useful for understanding opening bank accounts, their types like fixed, recurring and loan accounts for homes, cars and appliances. It is also helpful for retirement planning, understanding pension plans and a variety of insurance products. Taken in full, it serves as a comprehensive guide to achieve one’s
financial objectives.
Beyond personal finances, the book contains reference to government budget, monetary policy and government schemes. The latter could be useful guides for personal investment options. In broader terms, even a common educated person is expected to know about budgets, government finances, and inflation in the economy. In nutshell, this book is a useful guide to beginners; it is a must for educational institutions, especially higher secondary and colleges, public libraries and NGOs that deal with creating awareness of financial literacy.
(The author has four decades of experience in higher education teaching and research)