Financial Literacy for High School Students: How to Empower Yourself?
You must know the difference between an asset and a liability, and buy assets. An asset is something that puts money in my pocket. A liability is something that takes money out of my pocket.”
– Robert Kiyosaki, Rich Dad, Poor Dad (author)
Being financially literate can also mean understanding how to protect you from becoming a victim of fraud or other types of financial crime. The lack of financial literacy skills can lead to poor spending choices, increased debt, and a generational wealth gap. But what happens when it comes to school students? How do they get started with financial literacy skills? What kinds of tools, strategies, and techniques should they learn and apply so that they become financially literate? The following article shares some of the basic steps that all school students can take towards ensuring financial literacy.
Why is financial literacy important?
The level of financial literacy in India is home to 17.5% of the world’s population and, according to a poll conducted by Standard & Poor’s, over 76% of Indian students lack basic financial knowledge and they don’t understand the basics. Isn’t it surprising that a very low percentage of the Indian population has financial skills, which is, perhaps, one of the most important skills to learn?
Here are a few key financial literacy concepts.
- It helps people become independent and self-sufficient.
- It empowers you with basic knowledge of investment options, financial markets, capital budgeting, etc.
- Understanding your money mitigates the danger of facing a fraud-like situation.
- Financially literate people are better equipped to make sound decisions about their money, which can lead to a more stable financial future.
Is investing a part of financial literacy?
Yes, some of the fundamentals of financial literacy and how it may be used in daily life. When it comes to investments, there are a few basics you should know. First, understand what you’re investing in. There are different types of investments, including stocks, bonds, and mutual funds. Each has its own risk and return profile. Second, don’t put all your eggs in one basket. Diversify your portfolio by investing in different asset classes. This will help reduce your overall risk.
Ways to improve your financial literacy skills
There are a few key strategies that can help improve your financial literacy.
- Read books or articles about the topic. This can help you learn the basics and become more comfortable with financial concepts.
- Attend financial experts’ workshops or seminars. These can provide valuable insights and hands-on experience.
- Consult with financially literate friends or family members for advice.
- Use online resources, such as budgeting tools or calculators, to gain a better understanding of your finances.
- Join Skillarthi to gain financial literacy through hands-on learning, which helps you make personal finance decisions, make money, budget, and much more.
Skill Development Experiential Learning Programs by Skillarthi
Skillarthi Financial Literacy Program has been curated by industry experts working in the financial domain along with the support from educationists. The curriculum focuses on improving the Financial Literacy Skills in India for students for their bright future.
Explore the Financial Literacy Course by Skillarthi.
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