It is important for young people to understand their financial situation and make decisions about money. Without a basic understanding of finance, today’s youth may struggle to plan for the future or manage their spending. Financial literacy helps them make smart investments, budget properly, and save for retirement. It’s easy to agree that financially savvy youth are better equipped to navigate the challenges of adulthood and pursue their goals.
To understand what money means to today’s youth in a growing world, this series examines students and young working professionals and their views on money and finance.
Vibhuti Gupta of the University of Delhi spoke MintGenie in an interview about how he became interested in the stock market over time and continued to learn about its history and principles through various sources. As an economics student, his passions are varied, from art, to reading books, dancing, and singing.
What does money mean to you? Is this the most important factor when it comes to your life decisions like what to study, career etc.?
If we follow the literal definition, money is an authorized medium of exchange for various goods and services in an economy. Similarly, in my opinion, it is the medium to buy things that satisfy my needs and wants. This is a very powerful product because it can buy anything you want at this point in time. It may not be the most important factor but, certainly, an important factor to consider when making decisions about education and career.
Since the budget announcement is around the corner, what do you think today’s youth expect from the government?
Young people today look to the government and its financial decisions to spend more on digital literacy so that everyone has access to basic digital skills and to create stricter rules for safety and privacy. To reduce migration, we also want more policies and laws that promote job growth. The current generation of youth is more and more interested in mental health and wants to see more initiatives in this domain.
What are you spending your money on every month right now? Can you give a breakdown in terms of percentage?
As a college student living with her parents, I don’t have a lot of expenses. Most of my money, almost 60 percent is spent on books, stationery and sometimes hanging out with my friends. About 15 percent was spent on travel from my home to college and the rest was saved.
What are the things you want to spend money on?
Besides spending on basic necessities like food and clothes, I want to spend it on things of interest like art supplies and going to different museums, because it can be covered by my allowance. When I start earning, I want to spend it on traveling and collecting art pieces.
Are you saving money? If yes, how often and what do you do with this money?
Yes, I am saving money. I feel that saving money is important because it prepares you for unexpected expenses that may come up in the future. Usually, some of my money is spent on gifts for my friends or family.
What does your job mean? What are the top two factors you want to consider when deciding a company to work for?
Having a job, for me, is about independence. Becoming financially independent and standing on my own two feet is my top priority. I also feel that having a job and working will help me grow as a person and better understand my responsibilities. The top two factors I consider when deciding on a company to work for are the company’s work environment and the salary offered.
What do you think about investing your money? If you have an allocated amount of money, do you want to invest it in the stock market, mutual funds, or just keep it in your bank savings account?
I think investing money is very important. Everyone in their life at one point or another will invest their money in the stock market, mutual funds or bonds. Considering my age, it is time for me to take risks and therefore with the money allocated, I will put most of my money in the stock market. I am also positively thinking about investing in real estate, government schemes and mutual funds and after a certain age in bonds as well.
Do you think you have an understanding of how to save and invest? If yes, how did you learn? If not, are you trying to learn?
Although I am interested, I do not currently have the knowledge necessary to save and invest. I was interested in the stock market, so I took an online course on its history and principles in addition to trying to learn about investing and saving from my father.
Do you follow social media influencers and follow their investment advice?
No, I do not follow any social media influencers nor follow their investment advice because social media is not what it is. Therefore, I try to gather my knowledge from more reliable sources.
Do you talk to your mother or father about money and learn from them or follow their advice?
Yes, I talked to my mother and father about money and learned about saving and investing from them. My father also invested in the stock market and mutual funds and taught me about it to prepare me for the future.
This is the relationship between the economy and the financial market
First Published: 15 Jan 2023, 10:29 AM IST
