Aim and Vision

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We provide a platform to impart financial literacy and basic economic principles for underprivileged children and help them create their own way out of the vicious cycle that they’re stuck in.

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What is the importance of financial literacy? 

Financial literacy enables us to fully understand the value of money and hence equips us with the skill-set required to make informed financial decisions. The need for financial literacy increases as financial responsibility increases, which it has in the past decade.

The financial literacy rate of adults in India is 27%. As many as 45% of the students do not know how to create a budget, and approximately 60% of the students do not understand investments, the concept of risk to reward, or the time value of money. 

 

Components that will be covered in the RAASTA workshops:

Financial literacy comprises of 5 main components:

1. EARN: Understand how much money you make. Once you determine your monthly income, it becomes easier to create a budget to know how much money you can spend.

2. SPEND: Knowing how much money you earn allows you to allocate your funds. The best way to know how much you can spend is to make a budget. A monthly budget helps track your spending so you can determine how much to spend on different categories and still be able to save.

3. SAVE AND INVEST: We need to save for things such as an emergency, retirement, and to pay off debt. Setting aside money also prevents financial setbacks.

4. BORROW: Even with savings, at some point you may need to borrow money. Borrowing money is not a bad thing, however that's only if you learn to maintain a healthy credit score.

5. PROTECT: Protect the money you have made. Regularly check your bank statements and accounts for mistakes or suspicious activity. Keep your passwords and documents secure to eliminate scams and theft.

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We at Raasta will teach you to manage each of these components.