Financial literacy in school curriculum? Expert answers
Financial literacy in our curriculum — is there relevance for this new-age skill?
Money matters were quite simple in the 90s and 2000s, but now the avenues for revenues have transformed multifold. This is why financial literacy has been exceptionally focused in India’s school curriculum for the past few years.
In India, a few decades ago it was unheard of for children to get involved in financial matters, but today the perception has changed. Financial literacy is no longer just a concept that is only for advanced minds but is to be incorporated from a very early age.
The National Education Policy (NEP) 2020 suggests incorporating financial literacy modules from Classes VI to XII within subjects like Mathematics, Economics, and even life skills courses to create real-world relevance.
Methods, such as mock financial planning exercises and simulated investments, are encouraged to provide a hands-on understanding of financial concepts.
A strong foundation helps children to develop a steady bedrock for their economic growth where they can leverage financial literacy and not only help their parents sail smoothly through tough times but also dream of starting their own business.
Investments in stocks, mutual funds, and small cases can help venture and explore various means of passive income which brings financial stability.
So, financial literacy from an early age is invaluable where children can think of alternate income sources rather than relying on conventional ones.
Has the concept of financial literacy moved from basic banking skills to something more complex?
From the 90s and 2000s into today, the concept of money has evolved. Then, financial management only encompassed such basic things as saving, budgeting, and a few sources of traditional investments. Now with technology, though, many different opportunities are provided: freelancing, e-commerce, and digital investments like cryptocurrency.
Online banking, mobile payments, and financial apps make money handling easier than ever. The investment options have been diversified for much more financial gains.
In such complexity, new opportunities came into being but require greater financial literacy at the hands of individuals to grapple with more complex financial tools and to make effective choices on how to spend and where to invest.
What practical methods are used in schools to teach financial concepts?
Schools use hands-on methods like mock financial planning exercises and simulated investments. These activities provide students with practical exposure to financial concepts, helping them understand real-world applications.
Schools can also organise workshops or interactive sessions with financial experts to give students hands-on experience and knowledge directly from professionals.
Special events on finances can be arranged where children get to participate in quizzes and debates thereby enhancing their practical knowledge by leaps and bounds.
