Last month I went to check out what I thought was a financial literacy workshop for women who work in the anganwaris, India's government sponsored childcare centers. Financial literacy can be an important tool in developing a sustainable lifestyle, and I was interested to see how the organizers went about providing that tool. When I arrived at the conference hall full of working women, fanning themselves in the heat while a few fans on the ceiling stirred the heavy, humid air. What I found was the "Seminar on Investor Awareness," co-sponsored by the National Stock Exchange of India, and a roomful of rightly skeptical women. Here's my thoughts at the time:
In the midst of all this the power goes out, bringing both the power point slide show and the whirring of the fans to a complete halt. Yet the speaker goes on giving her speech, while the room grows hotter and sweat starts to drip from the brows of the audience. The people on stage are slightly sparred by the bringing of cold water.
I did not stay long after this, deciding not to deal with the intemperate environment. But in spite of, or maybe because of the heat the irony of the situation was not lost on me. What odder juxtaposition of events could there be: talking of money and investing in gold, while a basic utility is not functioning. My companion turned to me as we left and said if that had been a roomful of actual investors with money no one would even think of putting them in those conditions.
As the world crumbles under the ashes of the stock exchanges, here I sit in a seminar for financial literacy, which is basically "learn to invest your hard earned wages in the stock market for future financial security." Sure, they say, securities are risky, but the almighty market has other options to help you on the path to financial success. Give and the market will give back. The secret is learning which investment is right for you. A rather illusive lesson it seems to me.
The question on the power point projected on the wall says "Do we save? Or do we invest?" The women all laugh out loud. "We don't get paid enough to save... or invest." Everything these women and their families earn goes to the basic necessities of everyday living.
The speaker replies, "look at the broader picture." She goes on, if you have extra money (lol) you save it for your children's education, marriages, etc. But when you simply save, inflation (a big problem in India) keeps those savings from growing with any significance. Investing, she says, give far bigger returns. "We need to ensure more returns than the rate of inflation." Also, investments will continue to give returns post retirement.
For these women the speaker suggests buying gold. She says they already buy gold in the form of jewelry. But jewelers can reduce the value of the gold by skimming. Buy gold in units she says and it will take care of your future.
In the midst of all this the power goes out, bringing both the power point slide show and the whirring of the fans to a complete halt. Yet the speaker goes on giving her speech, while the room grows hotter and sweat starts to drip from the brows of the audience. The people on stage are slightly sparred by the bringing of cold water.
I did not stay long after this, deciding not to deal with the intemperate environment. But in spite of, or maybe because of the heat the irony of the situation was not lost on me. What odder juxtaposition of events could there be: talking of money and investing in gold, while a basic utility is not functioning. My companion turned to me as we left and said if that had been a roomful of actual investors with money no one would even think of putting them in those conditions.
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