Financial Literacy: Saving and Wealth Building
Description
This subject develops competency in systematic wealth accumulation through understanding saving psychology, selecting appropriate savings instruments, and harnessing compound interest. It covers diverse savings products available in Indian financial system (fixed deposits, recurring deposits, government schemes, PPF), teaches goal-based saving methodology, and demonstrates how inflation impacts savings. The subject integrates behavioral finance, explaining psychological barriers to saving, and provides practical frameworks for maintaining emergency funds and building long-term wealth.
Learning Objectives
Upon successful completion of this subject, learners will be able to: (1) understand the psychology of saving and delayed gratification, (2) calculate adequate emergency fund requirements, (3) establish and maintain emergency funds, (4) set SMART financial goals (Specific, Measurable, Achievable, Relevant, Time-bound), (5) classify goals by timeframe (short, medium, long-term), (6) compare and evaluate different savings products available in Indian banks, (7) understand fixed deposit mechanics and interest calculations, (8) use recurring deposits for systematic accumulation, (9) access Post Office Savings Schemes (NSC, KVP), (10) understand Sukanya Samriddhi Scheme features and tax benefits, (11) maximize benefits of Public Provident Fund, (12) calculate compound interest using formulas and financial tools, (13) apply Rule of 72 for wealth projection, (14) understand how inflation erodes purchasing power, (15) calculate real returns after inflation adjustment, (16) establish automated saving mechanisms through standing instructions, (17) understand tax implications of savings products, (18) leverage Section 80C for tax-advantaged saving.