A week ago, India celebrated National Education Day on November 11 to honour India’s first education minister Maulana Abul Kalam Azad’s birth anniversary. Since 2008, the day is celebrated as a reminder of his work promoting scientific knowledge, and basic and secondary education in India.
The visionary leader was instrumental in the establishment of three key institutions: The University Grants Commission (UGC), the first IIT at Kharagpur and the All India Council for Technical Education (AICTE), among many others.
Educational institutions in the country mark the day with seminars, symposia, essay-writing, elocution competitions, workshops and rallies with banner cards and slogans on the importance of literacy and the nation’s commitment to all aspects of education
Over the last seven decades since independence, India has made significant progress across various subjects within the education sector, including financial literacy.
Why The Need For Financial Literacy Education in Schools?
The world we live in today is marked by rampant consumerism, rising prices, job uncertainties and increasing levels of debt. However, according to a study by SEBI (Securities and Exchange Board of India) only 27% of India’s population is financially literate.
This dire situation has made it critical, more than ever, for young students to learn how to save, grow and manage their finances wisely.
To address this situation:
SEBI has created a 104-Page Financial Education Handbook for School Children.
Additionally, the National Centre for Financial Education (NCFE), a (Not-For Profit) company promoted by the SEBI, along with three other entities, namely the:
- Reserve Bank of India (RBI),
- Insurance Regulatory and Development Authority of India (IRDAI), and
- Pension Fund Regulatory and Development Authority (PFRDA),
has created a 21-Video Financial Education Series for school children covering 21 lessons on personal finance.
Here’s one of the 21 videos that covers the lesson on the “Importance of Saving Money”:
You can find all the 21 videos in the playlist section of their channel.
Financial literacy in school curriculum encompasses basic financial skills such as budgeting, saving, investing and debt management, skills that are essential for students to lead a secure and prosperous life.
Introducing financial management education for students right from an early age can provide them with a solid foundation in money management, which can empower them to make well-informed financial decisions as an adult.
Conclusion
No school curriculum is complete if financial literacy education is not part of the curriculum, especially at the secondary or higher secondary level. Financial literacy is not just academic knowledge but life-education that can inspire students to build financial discipline and develop strong money-management skills – right from their teenage years.
Over the long run, it can make them become highly responsible citizens who demonstrate excellent financial prudence, which collectively help in strengthening the nation’s economy. A nation can call itself a truly powerful economy, only if it has the least debt-to-GDP ratio.