Irshad Mushtaq
Jammu and Kashmir values education. Official and research-based sources show that general literacy in J&K is around the low-80s and is broadly in line with, or slightly above, the national average. But financial literacy is a different matter. National surveys and state-level studies show that only about one in four Indian adults meet minimum financial literacy standards, while J&K falls in the middle-to-lower range on financial literacy and financial inclusion.
This difference is important because a society can read books and still fail to read money. A family may know how to sign forms, use a smartphone and send children to school, but still struggle with budgeting, emergency savings, debt discipline, insurance, fraud awareness and long-term investing. That is why financial literacy should not be treated as a subject only for investors or bankers. It is now a life skill for children, students, fathers, mothers, workers, women earners and senior citizens across Kashmir.
What the data is telling us
The broad picture is simple. J&K’s general literacy compares reasonably well with India, but financial capability has not kept pace with that progress. Research also shows that India’s household savings have come under pressure over time, and financial savings in products like shares, debentures and mutual funds still make up only a small share of GDP. This means many families still save too little, plan too late, or depend too heavily on land, gold, debt or informal help.
J&K’s literacy level looks respectable when placed beside the national average. Yet financial literacy studies place J&K in a mid-to-lower band compared with other states, while India as a whole also performs poorly, with only about one in four adults meeting basic financial literacy standards. On female work participation, cited data suggests that J&K is somewhat above the national average. That is encouraging, but it also means families need stronger shared financial understanding, not weaker.
These figures show one clear truth: Kashmir does not have a shortage of intelligence. It has a shortage of everyday financial education, financial planning and money discipline at the household level.
Why financial literacy must begin at home
A person does not suddenly become financially wise at the age of 25. Money habits begin much earlier, often without formal teaching. Children watch how adults behave on salary day, how they handle school fees, how they respond to shopping pressure, whether they borrow often, whether they save anything, and how they react during emergencies.
If a child sees every problem being solved through last-minute borrowing, sale of gold, or emotional stress, the child learns that money is confusion. If the same child sees that some money is always saved first, bills are handled in order, and spending is discussed sensibly, the child learns that money can be managed with discipline.
This is why financial literacy in Kashmir should begin with simple home habits. Children should be taught the difference between needs and wants. They should understand why some income must be saved before spending. They should learn that debt is not free money. They should also see that wealth grows slowly through patience, planning and repetition, not through shortcuts.
Even very small lessons matter. A child can understand saving through a simple jar, a notebook, a bank account or a recurring family habit. Teenagers can understand inflation, compounding, digital fraud and the danger of impulse debt.
Why the father’s role in financial health is central
In many families, the father is still seen as the primary financial anchor, whether he is the sole earner or not. That social role brings a serious responsibility. The father must protect the financial health of the home, not only bring money into it. This means planning, prioritising and creating stability around food, school fees, healthcare, savings and future goals.
A father’s financial responsibility is central for several reasons. First, he often remains the person from whom the family expects financial direction and discipline. If he spends carelessly, delays essential payments, hides debt or refuses planning, the entire household becomes unstable. Second, children often learn their first model of money behaviour by watching the father’s attitude toward work, bills, savings and responsibility. Third, when the father takes financial health seriously, the burden on the rest of the family becomes lighter, calmer and more organised.
A financially responsible father does not ask only one question: “How much did I earn?” He also asks whether school fees, medicine and basic needs have been secured first. He asks whether the family has an emergency fund. He checks if insurance and savings are in place. He thinks about children’s education and the family’s long-term stability. He controls spending so that lifestyle does not consume the future.
This does not mean others have no role. Women, youth and elders also need financial awareness . But in many Kashmiri households, the father’s behaviour still sets the tone. If he respects money, the home usually becomes more stable. If he treats money casually, the whole family pays the price.
Why youth need money sense as much as degrees
Many young people today become digitally active before they become financially mature. They use UPI, online shopping, gaming payments, instant credit, trading apps, and social-media investment content much earlier than previous generations. Without proper financial literacy, this creates a dangerous mix of confidence and confusion.
For Kashmiri youth, money education should include understanding how digital payments work safely, how to recognise scams and fake investment promises, why credit cards and buy-now-pay-later products can become traps, why emergency savings matter before speculative investing, and why time in investing matters more than chasing quick returns.
This is not only about making money. It is about helping the first generation of earners avoid avoidable mistakes in the earliest and most important working years of life.
Why women’s financial literacy strengthens the whole family
J&K’s female work participation, in the cited sources, appears somewhat above the national average . This is a positive sign, but it also means women’s financial literacy has become even more important. National studies show that women still lag men in financial literacy on average.
This gap matters because many women contribute to family survival through earnings, savings, gold, parental support or home management, yet may still be excluded from decisions on budgeting, insurance, nominations or investing. That weakens the entire household.
Financial literacy for women in Kashmir should therefore include budgeting, record-keeping, understanding bank products, creating emergency funds, learning the basics of insurance and pension planning, understanding SIPs and long-term savings, and knowing how to protect themselves from fraud. When women understand finance and take part in decisions, the family becomes more secure.
Why workers and households need practical financial common sense
The national savings data carries a clear warning. Households remain the backbone of India’s savings system, but the quality and consistency of those savings are under pressure. At the same time, savings in financial products such as shares, debentures and mutual funds remain a small part of GDP. This means many households still rely heavily on informal methods or on just one or two asset types.
For Kashmiri workers, traders, salaried employees and ordinary households, financial literacy should remain simple and practical. Families should know the exact monthly inflow. They should separate essentials from lifestyle spending. They should save before spending, not after spending. They should create an emergency fund. They should take adequate insurance where needed. They should start small, regular, and goal-based investing. Above all, they should avoid high-interest debt for non-essential consumption.
Money does not become stable through hope alone. It becomes stable through systems.
Why senior citizens also need financial literacy
Financial literacy is not just a youth issue. Older people are often more vulnerable to fraud, confusion over digital banking, poor advice, and pressure from others . Many senior citizens understand thrift very well, but modern financial systems demand new knowledge such as digital safety, nomination rules, retirement income planning and healthcare cost management.
For senior citizens in Kashmir, useful financial literacy includes safe digital banking habits, protection from fraud calls and fake schemes, clear nominations and documentation, understanding which products are safe for regular income and which are too risky, and planning medical expenses realistically. Financial dignity in old age depends not only on what was earned over a lifetime, but on how wisely it is protected.
What Kashmir needs now
The data does not call for fear. It calls for action.J&K has made progress in education, and women’s work participation shows movement.
The next step is to match that progress with financial capability.
Kashmir needs money basics in schools. It needs youth sessions on digital finance and fraud prevention. It needs father-focused awareness on family budgeting and financial responsibility. It needs women-focused programmes on savings, protection and investing. It needs senior-citizen guidance on safe banking and retirement protection. It also needs media writing in plain English and Urdu that explains finance without jargon.
This is not only an economic agenda. It is a family agenda, a social agenda and a future agenda.
Conclusion
Jammu and Kashmir has shown that it values education. The next challenge is to turn that educational progress into financial wisdom.
The evidence is clear: general literacy is reasonably strong, but financial literacy remains too low for the demands of modern life, both in India and in J&.K
Financial literacy must therefore reach every Kashmiri. It must reach the child learning to save, the student entering digital payments, the young earner starting the first investment, the mother managing the household budget, the father carrying the main responsibility for financial health, the worker facing irregular income, and the senior citizen protecting lifetime savings.
(The author is the founder of M I Securities, Munawarabad, Srinagar. He can be reached at irshad@bp.sharekhan.com)