Traditional Lessons On Savings, SIPs Failing To Connect With Gen Z: Experts

India's next financial literacy challenge may not be teaching people what a SIP or mutual fund is. It may be finding a way to make them care.

The World Economic Forum has identified financial literacy as a key area for India's younger generation, noting that only 27 per cent of Indian adults are financially literate compared with 52 per cent in advanced economies. Experts say this gap highlights the need for new approaches that match the content consumption habits of Gen Z.

One idea gaining attention is gamified learning, where users learn financial concepts through interactive experiences rather than classroom-style explanations.

"Finance is not necessarily difficult; the way we explain it often makes it feel difficult," Mahek Tomer, Creator, Founder and CEO of India's Future Investors, told NDTV.

According to Tomer, the focus should shift from explaining concepts to creating situations where people can experience them. Instead of asking a young person to study savings, investing or mutual funds, educational content can place them in scenarios involving limited budgets, competing priorities and real-world choices.

Supporters of the approach say gamification is often misunderstood. Rather than turning finance into a game, they argue it provides a safe environment where people can make decisions, see outcomes and learn from mistakes.

"For me, gamification is not about making money a game. It is about letting people make decisions, see the consequences and learn from them," Tomer said.

Another financial expert and educator, Professor Abhinav Tripathi, who teaches at a Ghaziabad-based university, believes the concept can extend beyond dedicated finance apps. Reality-show formats could incorporate financial decision-making challenges, quizzes could test money skills, while OTT storylines could demonstrate the long-term impact of saving, spending or investing.

As younger audiences increasingly consume interactive and visual content, proponents argue that financial education must evolve accordingly. "The goal is to transform financial literacy from something people are told about into something they actively experience," added Tripathi.