By embedding practical awareness, strong security, and digital trust in the investor “ecosystem”, Nepal can nurture a generation of empowered citizens. Digitization expands inclusion but also increases potential risks in the absence of adequate financial education. There are many examples in Nepal itself of how many investors have lost their investments due to information insecurity.

Lack of access to financial services is a major factor in this—they lack the ability to distinguish real opportunities from digital fraud. As the “Global Investor Week (Oct 6-12) 2025” begins, it is appropriate to consider the risks and opportunities facing Nepal’s growing young investor class.

Today, conversations about money flourish not at bank counters or in the offices of traders but on smartphones, reels and trading apps. The rapid digitization of financial services has made investing and saving more accessible than ever, creating a new class of first-time investors, many of whom are young and ambitious.

Yet, with these opportunities has come a surge in scams, misinformation and misplaced trust, which threaten to undermine the trust that underpins financial inclusion. The rise of financial influencers, or “finfluencers,” is perhaps the most visible sign of this new era.

They package complex financial concepts into 60-second videos, attracting millions. While some offer trusted insights, others engage in biased propaganda disguised as sound advice, often pushing risky products for undisclosed commissions.

For budding investors, this ecosystem is both a gateway and a minefield. Some proceed cautiously through systematic investment plans or fixed deposits, while others pursue quick gains through high-risk equities or speculative assets. Financial engagement carries both empowerment and risk. A lack of confidence or adequate financial education can discourage participation in formal markets, leaving them dependent on informal and exploitative options.

Financial literacy is essential for the general public as it helps them to choose banking services and make the right decisions. Along with financial literacy, there is also a need to increase digital transactions.

While most people acquire the knowledge necessary to develop a sensible financial plan, many errors will inevitably lead to irreversible adverse financial consequences. In order to survive and compete effectively in today’s environment, the youth, who constitute 70 percent of the population and 100 percent of Nepal’s future, feel strongly compelled to write and teach.

The world is getting smaller due to an increasingly integrated and globalized economy. In many industries, we are expected to compete against the best from around the world. Knowledge is truly a valuable asset. Without all the facts, sound decisions cannot be made, resulting in countless mistakes. Clarity is second only to accuracy for financial writers and editors.

Therefore, Nepali media reporters have been resolute in their efforts in recent years to make the content of their newspapers and its internet companion editions as accessible as possible to a wide range of readers.

Financial news presentation

It has been observed that despite the newspapers’ efforts, many people continue to find the terms, concepts and presentation of detailed financial news difficult—especially if they are relatively new to the world of business and finance. 

The capital market is more important now than ever. The increasing interdependence of the world’s countries—for which the acronym is globalization—has limited the ability of individual governments to act independently. In recent years, the importance of financial education has increased as a result of the development of financial markets and demographic, economic and policy changes.

Financial markets are becoming more sophisticated and new products are constantly being offered. Consumers now have greater access to a variety of credit and savings instruments provided by a variety of entities, from online banks and brokerage firms to community-based groups.

As a result of changes in pension arrangements, an increasing number of workers will take on more responsibility for saving for their retirement. With increasing life expectancy, individuals will need to ensure that they have enough money to last longer so that they can spend it during retirement.

Financial education

As a major topic in financial education, the definition of financial education should be deliberately kept broad. By using a broad definition of financial education that includes elements of information, instruction, and advice, the identification, description, and analysis of financial education programs is as inclusive and comprehensive as possible.

Financial education is the process by which financial consumers/investors improve their understanding of financial products and concepts and, through information, guidance and/or objective advice, develop the skills and confidence to be more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being. Instruction involves providing consumers with facts, data, and specialized knowledge to make them aware of financial opportunities, choices, and outcomes.

What is investment?

There is also some pride in being a capitalist. Your savings result in wealth creation. In a world without equity and bond investors, without the railways being built purely for profit, the pharmaceutical industry would be much smaller and Silicon Valley would still be producing fruit.

New technologies or products can be created. Books and movies can be written. A greater level of education can be obtained, leading to careers in fields such as corporate management, financial advisory, law, health care, sales, etc. Having a diversified portfolio of stocks, bonds, real estate, and other securities can significantly increase an investor’s returns and actually reduce risk.

But high-yield investments such as stocks, bonds, and real estate involve a greater level of risk, which can lead to lower investment returns and increased potential for losses.

In Nepal, SEBON and NEPSE have invested some time and resources in educating investors and expanding financial literacy, and the culture of stock investment has grown to the desired extent. 

Importance of financial education

The complexity of financial products means that consumers are now faced with a wide variety of financial instruments that offer a range of options in terms of fees, interest rates, maturities, etc. The quality of some of these financial instruments, such as life insurance policies, is difficult to assess because they are purchased occasionally and there is often a significant time lag between purchase and use.

The deregulation of financial markets and the reduction in costs brought about by the development of information technology and telecommunications have led to an increase in the number of new products tailored to meet very specific market needs.

The internet has also significantly increased both the amount of investment information and the availability of credit products and these products. A review of financial literacy surveys in 12 countries by international agencies concluded that financial understanding among consumers is low.

Financial literacy levels are lower for certain groups, such as the less educated, minorities, and those at the lower end of the income distribution.

Financial education can benefit consumers of all ages and income levels. For young adults just starting their working lives, it can provide basic tools for budgeting and saving so that spending and debt can be kept under control.

Financial education can help families gain the discipline to save for their home and/or their children’s education. It can help older workers ensure they have enough savings for a comfortable retirement by providing them with the information and skills to make wise investment choices with both their pension plans and any personal savings plans. Overall, financially educated consumers are in a better position to protect themselves and report potential abuses by financial intermediaries to authorities. In this way, they will facilitate supervisory activity and theoretically allow for a lower level of regulatory intervention.

As a result, the regulatory burden on firms will be reduced. 

The most commonly used method of providing financial education is through publications. These publications take various forms, including brochures, magazines, booklets, guidance papers, newsletters, annual reports, direct mail documents, letters, and disclosure documents. Another frequently used method is the internet, in the form of websites, web portals, and other online services.