Enhancing Financial Literacy in NRI millennial and Gen Z to make informed financial decisions
Date
2023-12
Authors
Chaudhari, Pooja Satish
Major Professor
Gilbert, Stephen
Advisor
Committee Member
Oliver, James
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Abstract
Non-Resident Indians (NRIs) require a deeper level of financial knowledge due to their unique circumstances. They navigate complex taxation systems in both their home country and country of residence, manage multiple currencies and foreign exchange considerations, diversify investments across international markets, handle property ownership with varying laws, access specialized banking services, and stay compliant
with diverse legal and regulatory requirements. NRIs also plan for retirement across borders, manage unique financial risks, support families in different countries, and engage in estate planning that spans international authorities. NRIs' financial situations are inherently intricate, demanding a heightened level of financial literacy to effectively manage their diverse financial portfolios and make informed decisions. The highly preferred investment avenues among the NRIs are capital market, government securities and real estate. The important influences on these financial decisions are through financial experts and auditors. The predecessors for financial wellness among the respondents are financial behaviour and financial attitude. (Dr.V.RAMANUJAM*, 2020). With the growing millennial and Gen-Z population in the US it is crucial to straighten out the financial attitude and behaviour. A study conducted by the George Washington University School of Business and the TIAA Institute revealed that when it comes to financial literacy, Gen Z lags older generations. The research found that only 43% of Gen Z respondents answered many financial-related questions correctly, whereas the average across all age groups was 55%. The survey, which involved 3,035
participants, highlights that many fintech companies are actively promoting savings among Gen Z. They do this by initially focusing on short-term lifestyle objectives, such as saving for vacations. Subsequently, they leverage AI and personalized recommendations to assist this demographic in identifying suitable tools and services to achieve their financial goals. However, there is a knowledge gap to leverage most of the goals and the user group lacks the depth of understanding to improve their goals.
Pocket Fin aims to be a user-friendly, one-stop solution to simplify NRI personal finance. It provides essential financial literacy content in easy-to-digest formats like podcasts, audiobook summaries, and news briefs that users can learn from in just minutes. Pocket Fin also allows users to get guidance from finance coach bots and align finances with personalized goals like retirement or buying property in India.
The platform recognizes the busy lifestyles of working professionals and students, offering knowledge and tools accessible anytime, anywhere via web and mobile. While optimized for NRIs, PocketFin can benefit anyone seeking to take control of their money with simplicity, affordability, and unbiased guidance.
Though the long-term vision is to be a comprehensive wealth management ecosystem, the project scope for now is on key parameters like education, goal
planning, and the basics of investing in India from USA. This foundational knowledge can empower sound financial decisions and sustained growth. By making personal finance approachable, PocketFin aims to bring financial security and confidence within anyone's reach, not just the wealthy.
Through research, there was more clarity on how the United States offer various financial literacy tools and resources to educate different age groups, including websites like MyMoney.gov and CashCourse, which provide customisable curriculums; Khan Academy's free online courses on financial concepts; simulation games like Financial Football and Banzai that engage students; digital learning platforms like EverFi Financial Literacy; and nonprofit advocacy groups like Jump$tart Coalition that promote financial education. Local libraries also often offer in-person workshops and seminars. The most comprehensive tools provide tailored educational materials appropriate for diverse settings and age groups, with games and interactive
activities also effectively engaging students in building smart financial habits. These systems are specific to user base only in the USA and lack inclusivity. The current fragmented point solutions can be pictured as multiple places like social media platforms - YouTube, google search and Instagram occasionally, along with reading paperback books when the users have time. These factors poorly address their needs and hence, demands a system in place that can cater to knowledge at their own pace and way. This would help them to change their financial behaviour and attitudes towards wealth.
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2023