In today’s rapidly changing world, an area that remains underemphasised in India’s educational system is financial education.
Here are key factors that could help enhance financial literacy among students:
Recognising the financial literacy gap
One of the most pressing challenges facing young adults today is a lack of financial literacy.
Despite strong academic performance in traditional subjects, many students are ill-equipped to handle personal finance.
According to the National Centre for Financial Education, only 27% of Indian adults are financially literate. Globally, a report from the OECD reveals that less than a quarter of young adults feel confident in their financial understanding.
“Financial literacy is not just about numbers; it’s about understanding how to manage, save, and grow your money,” says Ajay Lakhotia, Founder & CEO of StockGro.
“Schools and colleges must bridge this gap by incorporating financial education into their curricula at an earlier stage, helping students build the confidence and skills they need to navigate their financial futures,” he said.
Incorporating practical, experiential learning
Traditional methods of teaching financial concepts often fall short. Lakhotia advocates for a more interactive approach to financial education.
“Instead of just textbooks, students need to engage with practical tools like budgeting apps, investment simulators, and workshops led by industry experts,” he explains.
Experiential learning allows students to see theory in action, making financial concepts like budgeting, saving, investing, and compounding more tangible.
Studies show that students retain up to 75% of knowledge when they learn through practical experience, compared to only 5-10% through passive reading.
The role of schools and colleges in financial education
Educational institutions play a crucial role in shaping students’ financial futures.
According to Lakhotia, it’s important for schools and colleges to recognise that financial literacy is not just an optional skill — it’s essential for students’ personal growth and success.
By incorporating financial education into existing subjects, such as economics or mathematics, schools can provide a comprehensive view of how financial concepts apply in real life.
Moreover, schools should organise interactive workshops and seminars with financial experts, helping students gain a deeper understanding of the practical aspects of personal finance.
This could include topics like investment planning, debt management, and financial goal-setting.
Empowering individuals without a formal finance background
For those without a formal finance background, Lakhotia recommends starting with simple, accessible resources.
“The key is to start small and gradually build up your knowledge,” he says. “Look for online courses that break down the basics of money management. Apps for tracking daily expenses can help you understand your spending habits, and setting up a simple budget can be a great first step.”
Over time, individuals can refine their budgets, experiment with savings, and explore investment opportunities to build a secure financial future.
Lakhotia also suggests learning from credible financial experts. “Follow SEBI-registered advisors and observe how they adjust their portfolios in response to market changes. This will give you insights into making informed decisions and building financial confidence.”
