Financial literacy is an essential life skill for participating in modern society. In an increasingly complex world, where kids will eventually have to manage their own financial destiny on their own, children are growing up.

National surveys show that young folks have among the lowest levels of financial knowledge. These people frequently lack excitement for carrying out wise financial planning and generally struggle to choose the right financial items. Whether it comes through allowances or part-time work, children need to learn how to manage money from a young age to help them choose between many career and educational options. It could be necessary to use bank cards or savings accounts to access these funds.

What is the level of financial literacy in India?

According to a 2019 National Centre for Financial Education survey, only 27% of Indians are financially literate. Among the BRICS countries, India has the lowest level of financial literacy.

Even while the variety of financial products offered in Asia “continues to increase swiftly,” a survey by Standard & Poor claims that “the survey suggests that most consumers lack a general understanding of credit, compound interest, and other essential concepts.”

How can you teach them financial literacy?

Although professionals in their professions, such as professors, lawyers, and doctors, frequently lack the knowledge required to make wise financial decisions on their own. If students are taught about the financial markets from a young age, they can make the right decision at the right time.

The flagship school training programme is administered by organisations like the National Centre of Financial Education (NCFE), and approximately 150 schools in India have received certification as “Money Smart” schools. Through free student workbooks and teacher training, the programme gives schools the tools they need to teach children about money management.
Around 4,000 schools in six states—Nagaland, Gujarat, Himachal Pradesh, Goa, Tamil Nadu, and Punjab—are receiving financial education programmes from the National Stock Exchange.

At the secondary and senior secondary levels, the Central Board of Secondary Education (CBSE) also offers classes in banking, insurance, and financial markets management.

In addition to the initiatives made by these institutions, as a parent, you should teach your children about money management by taking them grocery shopping and teaching them the fundamentals of commerce. By introducing them to such schemes under your supervision, you may teach them responsibility and give them financial product knowledge. For high school and college students, there are a variety of short-term online and offline courses on responsible money management. To help them become more financially savvy and make the best decisions possible, you should urge them to sign up for these courses.

We at the Agrima Foundation assist the pupils in acquiring financial literacy at a young age for improved comprehension.