How can financial literacy be taught and why it is important for students after Class 12
Students who possess financial literacy are more equipped to manage their money, stay out of debt, and make investments for the future.
An important stage in a student's path is the change from school to college or the workforce. At this point, students begin to make choices on their own regarding their lifestyle, education, and jobs. However, financial education—the capacity to comprehend investments, handle money sensibly, and steer clear of financial pitfalls—is one element that is frequently disregarded.
The Value of Financial Knowledge
Handling Individual Financial Affairs
Students start managing their finances after the 12th grade, including everyday expenses, books, college fees, and housing. If they lack financial literacy, they can have trouble creating a budget and cutting back on wasteful spending. Financial stress can be avoided by learning to track spending, save money, and create a budget.
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Steer Clear of Debt Traps
Many students utilise credit cards or take out university loans without realising the long-term effects. Students who receive financial education are better able to distinguish between good and bad debt, such as impulsive credit card use and education loans, and make well-informed borrowing decisions.
Wise Investment Choices
Students who start investing early can eventually accumulate a fortune. Students who learn about PPFs, fixed deposits, stock markets, and mutual funds may be inspired to increase their savings rather than engage in careless spending.
Knowing About Banking and Taxes
Many young folks don't know how to properly manage bank accounts or how income tax operates. They become financially responsible through financial education, which teaches students key ideas like income tax, GST, net banking, and digital payments.
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Growth in Entrepreneurship and Careers
Some students want to launch side projects or businesses, but without financial literacy, managing company funds becomes difficult. Business success depends on knowing how to manage investments, profits, and expenses.
How Can Financial Literacy Be Taught to Students?
Self-Learning: The Psychology of Money and Rich Dad Poor Dad are two excellent books for learning about personal finance.
Online courses: Coursera, Udemy, YouTube, and other platforms offer free financial education.
Workshops & Seminars: Students can acquire useful knowledge by participating in financial awareness programs.
Parental Guidance: At a young age, parents should instill fundamental saving and money management skills.
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Students who possess financial literacy are more equipped to manage their money, stay out of debt, and make investments for the future. To educate pupils for the real world, financial education should be incorporated into the curricula of schools and universities. A better financial future can be built the sooner one begins.
Your future self will appreciate you starting your financial education now!
(Author Manish Mishra is Founder, GenZCFO. Views expressed are personal.)
