Analyzing the Impact of Financial Resilience on the Lives of Individuals and Household Post Covid-19 in Indian Economy

Abstract

Purpose: Economic crisis is a global phenomenon. When the crisis hits, many people are affected. This paper is an attempt to analyze the impact of financial resilience on the lives of individuals and households. In this study we analyze what are common financial shocks that individuals can face and how they tend to cope with this and our recommendations. Methodology: Literature review and comparative study of consumption and consumer credit across diverse market. Main Findings: The intensity of the economic crisis may vary from one person to another, depending on the individual financial resilience. Some households are less resilient to financial shocks than others. This may be because they have low levels of savings, have limited access to affordable credit, already hold high levels of debt or lack the skills required to manage household budgets. Implications: Financial resilience is difficult to estimate because it is a dynamic concept – the ability to recover quickly from an income or expenditure shock. Savings are in anticipation to the challenges face which might hinder the achievement of financial goals, hence there is a scope for new saving/investment products which are more comprehensive in nature. Novelty: We over a period have witnessed that there is a social support to the society during economic crisis but what is required is organization resilience rather than developing personal capabilities. The resilience should go beyond financial vulnerabilities and encompass mental stability, emotional wellbeing, education attainment etc.