Financial education for teens is certainly one of the most underrated topics of education and isn’t covered in the educational curriculum followed by schools or even under graduate colleges in India.
By Mukund Rao
What if India’s youth could be taught the basics of personal finance and at the same time get rewarded for imbibing good money habits with well-deserved incentives? Well, this is no longer a ‘too good to be true’ scenario. India’s youth centric pocket money apps have struck a chord with the country’s youngsters by giving them a new voice and platforms that allow them to manage their own money – be it monthly allowances and make real-world decisions! Unlike before, the youth is being empowered to have greater visibility into their finances – from spending to saving to earning – while understanding how to manage money responsibly.
Youngsters have struggled to find avenues to get financial literacy in our country. India currently has over 200 million teenagers and young adults and yet despite being the most tech-savvy and a digital first generation, they don’t get exposure to this topic. Financial education for teens is certainly one of the most underrated topics of education and isn’t covered in the educational curriculum followed by schools or even under graduate colleges in India. It’s quite limited as a topic within families. Even from a banking perspective, this segment is largely ignored and underserved, considered unprofitable – until they hit the age of 18 and start seeking savings accounts and financial products.
It’s ironic that despite participating in financial decisions such as food, fashion, gadgets, travel and other categories, India’s youth either conduct over 80% of their transactions in cash or predominantly depend on their parent’s debit cards or UPI wallets to pay for digital transactions. It’s thus of no surprise that students end up entering adulthood with little or no knowledge of personal finance. When banks start to bombard them with offers for credit cards and loans, the possibility of landing in financial trouble increases if they don’t understand basic principles such as compound interest, penalties and credit scores!
Youth centric pocket money apps have come to the rescue by understanding the pulse of this user segment and addressing their specific needs and expectations. With online being their default state and information merely being a voice command away, GenZ consumers are not willing to settle for anything less than instant convenience- especially when it comes to something as important as managing their money. This is the sweet spot that pocket money apps have captured.
The average attention span for our GenZ islimited to just 8 seconds and hence India’s youth centric pocket money apps have chosen to break down complex financial concepts into manageable bite sized chunks to grab their eyeballs. From taxes to what banking truly is, players in India are covering the basics and more. To make the grasping process go beyond old and boring lectures to a more fun and smart way of learning, GenZ are soaking in thecurated content presented to them via short blogs and videos. These apps are also increasingly using social media and influencers to disseminate financial awareness in a fun and engaging manner.
Never before was this user segment given an opportunity to comprehend and apply financial concepts in real-life situations. Pocket money apps offering a card for teenagers is playing a crucial role in helping them consciously allocate their pocket money within the freedom and limits determined by their parents. The fact that the entire modus operandi works in tandem with their parents negates avenues for conflicts. So essentially, youth pocket money apps have successfully created a safe space for children to start making financial decisions and work for rewards from a very young age.
Gamification to encourage the youth to save money in a fun way is steadily moving to the forefront- it’s all about stimulating the teens to make their own trade-off decisions. Pocket money apps also offerdiscounts and rewards from brands curated for the youth of India.
Gen Z are seeking transparency and authenticity. Youth centric pocket money apps have hit the bullseye by providing banking experience from the ground up. Almost all players in this category are growing at a rapid pace. The fact that they have built a safe space where young consumers can take ownership for their own money and (even) make small money mistakes early on, while starting to build good money habits prior to heading off for higher education or enter the professional world is already slowly yet steadily changing the dynamics of this generation.
The author is co-founder of muvin
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