Isn’t it surprising that a very low percentage of Indian Population has Financial Skills which is, perhaps, one of the most important skills to learn?
Have you ever thought that while we plan our future to earn money but never really prepare ourselves for managing the hard-earned money?
Why Financial Literacy is Important for School Students?
India is home to 17.5% of the world’s population and according to a survey conducted by Standard & Poor’s, over 76% of Indian adults lack basic financial literacy and they don’t understand the most basic and key financial concepts.
Schools are designed to prepare children for college/university or the working world, such as reading, math, science and other subjects. Elementary and secondary education emphasize broad knowledge, exposing children to a variety of ideas and topics. But if we recall our school days or even the current system, there’s one topic that neither the schools nor parents emphasize on teaching students, which is, Financial Literacy.
Teaching financial skills to students’ right from the early days before they enter college or the workforce is crucial to helping them grow into adults who can achieve financial security and success. Young people are not prepared to manage their finances when they reach adulthood. There is almost no or very limited focus on imparting Financial Literacy to the students despite the fact that financial aspects are the most critical for future development.
The Importance of Financial Literacy for Students
Defining Financial Literacy
According to Investopedia:
Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. Financial literacy is the foundation of your relationship with money, and it is a life-long journey of learning. The earlier you start, the better off you will be, because education is the key to success when it comes to money.
Math is certainly part of financial literacy, but so is the ability to understand one’s credit rating, to avoid and pay down debt, and to understand how financial transactions and products work in order to make informed financial decisions.
Imparting Financial Skills to Students
It’s important to take an active hand in preparing students for the financial world. The education needn’t focus on complex economics topics, rather, it should focus on topics that are easy for students to learn and that have immediate practical application. The group of experts has the following recommendations to develop Financial Literacy among students:
- Start at an early age. It can be as early as Kindergarten
- Include questions related to financial aspects during tests
- Provide students with practical learning, so they can use their finance skills and learn from their experiences
- Parents can start touching upon financial topics at home and involve them in selection of Financial Products and Services
Why does Financial Literacy Matters?
Acquiring Financial Literacy skills early and throughout their educational and professional journey carry tangible benefits throughout their lives. Financial Literacy at the young age can have a long term impact. There are innumerable benefits of knowing the advantages of putting the money into retirement account as soon as someone starts earning money. It would make an enormous difference if people could do this at the early age.
It is difficult to navigate on one’s own, and with the ever increasing complexity in the financial system it is important to get adept to Financial Skills at a very early age.
A physicist, Buchanan describes how financial systems interact with each other in ways that are hard to predict and decipher, which “helps financial institutions hide the risks they create.” Financial literacy can help students discern these risks for themselves as they enter the adult world and help them avoid risks, too.
Young people are increasingly unable to manage their financial health effectively. Consistent training in basic financial literacy could help alleviate much of this problem.
Students who learn to manage their finances early and often become adults who are better equipped to live independently. By teaching students to make good financial decisions, they learn to pay down debt or avoid it altogether.
Students who learn to navigate the world of debt and credit will tend to have more money for savings, which can help pay for large expenses without relying on credit, and they can set aside money for retirement accounts.
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.
How to join the course or program:
- Students can know more about the program by visiting our courses section
- Schools or educational institutes focusing on improvising the existing curriculum or adding courses/program offered by Skillarthi in their curriculum can mail us on [email protected].
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