”When I was young I thought that money was the most important thing in life; now that I am old I know that it is." -Oscar Wilde.
There might be some argument if money is the most important thing in life, yet we all agree that it is one among the pillars to living a fulfilled life. India has a literacy rate of 80 per cent. Unfortunately, just 24% of the population is financially educated in the country. For a country whose progress is dependent on the economy, the fact that three-quarters of India's population is unaware of or uncaring about the vital need to manage cash is troubling. Though a lot of importance is given to STEM subjects, little effort is being made to make everyone financially literate and learning to manage money is one of the most undermined skills.
Financial literacy is required the most when young individuals who have recently begun their professions find it difficult to manage their finances and wind up spending more than they make. When people fall into the debt trap, they increase their chances of not being able to provide for themselves and their children. When people recognise the necessity of financial education later in life, it becomes less beneficial because they already owe money.
One way to change this is to mandate financial education in school. Financial education in schools would be an effective policy instrument for combating the threat of financial illiteracy. Educating people on real-life difficulties would result in a generation of young people who are more pragmatic in their financial decisions, which would ultimately benefit the economy.
People would be better able to grasp and negotiate their economic landscape if they had a solid understanding of financial principles. They would also be better able to understand the danger of financial losses they might face. Financial knowledge would help people better manage their money in the present. Nonetheless, it would eventually grow personal wealth and protect oneself and their families in the event of a disaster like the covid epidemic, a better retirement plan, and a stable future for the family. Finally, having a lower financial load means having greater financial and mental freedom.
PrathameshShanbhag
I truly agree with you, Mohan! I remember a quote from Aman Dhattarwal that "We are told to earn the money from childhood, but no one tells how to manage". I hope Financial literacy will be introduced in our curriculum but NOT as a co-curricular but a mandatory subject.