JJEM: Special Edition 4 (May 2025)
JJEM: Special Edition 4 (May 2025)
2025-05-31
Tech-Driven Transformation: Reshaping the Financial Literacy
Roja K R, Dr. Sunitha R
Financial literacy is a critical ability that allows people to manage their money, make educated decisions, and attain financial goals. It includes budgeting, savings, investment, debt management, and retirement planning. Budgeting, which is supported by tools such as apps and spreadsheets, allows for more effective allocation of income. Savings begin with an emergency fund of 3-6 months' worth of expenses, with automated contributions to high-yield accounts or investments to ensure consistency and leverage compound interest. Financial literacy also includes insurance to guard against unforeseen disasters and avoid problems such as overspending or poor investing decisions. Financial literacy also includes insurance to guard against unforeseen catastrophes and avoiding pitfalls such as excessive spending or poor investments. Continuous education through books, courses, and tools is essential. It empowers people, promotes economic stability, lowers inequality, and strengthens financial institutions. In today's digital world, it helps navigate complex systems, avoid scams, and build secure futures, benefiting both individuals and society. Financial literacy is hampered by inadequate access to education, financial misinformation, and psychological hurdles such as worry. Challenges include navigating complex financial systems, socioeconomic disparities, and a digital divide in financial tools. However, opportunities lie in leveraging technology for education, integrating financial literacy into curricula, and promoting community programs. Empowering individuals with knowledge fosters informed decision- making, reduces inequality, and enhances economic stability, creating pathways for personal and societal growth. Tech-driven transformation is transforming financial literacy by improving accessibility, engagement, and personalised instruction. Apps, online courses, and AI-powered platforms simplify difficult financial concepts, allowing users to make more educated decisions. Financial literacy transforms into a dynamic, lifelong process by using technology, preparing individuals to manage modern financial institutions and building economic resilience and prosperity in an increasingly digital age.
Technology, Financial Literacy, Digital Transformation