Why Financial Literacy is a National Priority

-

Consider your high school years for a moment. Which subjects do you find yourself returning to now that you’re an adult in the real world?

You probably don’t use trigonometry, algebra, or calculus in your daily life. In all seriousness, it’s surprising that kids don’t learn about personal finance in school. Our children spend hours learning complex math to solve problems that do not exist in the real world, but they do not learn real-world skills like budgeting or avoiding consumer debt.

“Schools must teach students real-world financial literacy in order to prepare them for better spending and borrowing in an escalating cost-of-living crisis,” says Anoop Singh Bishnoi.

Many experts argue that the school education system does not need to teach pupils about real-world lessons because the system is designed to develop transferable skills. While there may be an argument within that (and the need for children to be able to figure things out on their own), as a society we have a responsibility to provide children with both academic and practical educational lessons. Yes, if students want to study mathematics at the university level, we must teach them advanced Pythagoras theorem and algebra, but it is also critical that they understand the risks associated with taking out a payday loan or what 64% APR means when applying for a credit card.

“There is a lack of understanding about the risks of borrowing, and maxing out credit cards. This is becoming even more problematic with the Buy Now and Pay Later trend that students, particularly on low incomes, are getting used to. If we were all taught in school about the risks and benefits of borrowing, we might think twice about applying for credit or knowing where to go for help with our finances,” adds Anoop.

Finally, if you don’t have someone to educate you on the risks of borrowing credit, you’re more likely to be taken advantage of. On the other hand, if you don’t know how to invest, you may miss out on accumulating personal wealth. Young people, for the most part, learn financial literacy and personal finance skills from their parents, both explicitly and subliminally. If a parent is struggling with finances, there may not be time or even a discussion about how children should approach their finances as they grow older.

If schools took a more hands-on approach to teach children about personal finance, making it a regular lesson in their curriculum (say, one session per week), children would not be reliant on their parents for financial advice, and they would have access to reputable, trustworthy, independent financial lessons from industry experts.

Location: New Delhi, Delhi, India

Comments

Post a Comment

Popular posts from this blog

Towards Gender Equality in Education - Anoop Singh Bishnoi

-
Image
While the number of illiterate youth has decreased from 170 million to 115 million, nonetheless, the gender gap in literacy rates has remained relatively stable. For example, India has a significant gender disparity. Approximately 75% of Indian men have at least a basic level of literacy, while 51% of Indian women are literate. Some of the findings of a survey conducted among teachers, parents, and students to understand their perceptions and attitudes towards gender in the education space were as follows: most parents believe that nurturing and caring for children are basic responsibilities of women. Most parents believe that women tolerate violence for the sake of the family, and they point to symbols of sacrifice and compassion as evidence. According to 34% of parents, the main cause of sexual abuse is girls’ behavior and sartorial style. Around 40% of teachers also stated that they assign decoration tasks to girls and tangible physical tasks to boys. To address a deeply embedded
Read more

Does CUET reduce Students’ pressure-A Bane or Beacon for Students

-
Image
Last year, the Union government announced that all admissions to Central Universities for undergraduate courses would be decided by a Common University Entrance Test (CUET). The CUET’s goals are admirable, and it is likely that this will change the education landscape in a few years. After all, unreasonable high school cutoffs are a legitimate concern, and the CUET may, in the long run, level the playing field for students across the country. However, there are more arguments against the common entrance exam than for it. The concept of bringing uniformity to the admissions process via a centralized exam is not novel. In 2010, the Central University CET was used for admission to 1,500 seats in seven new Central universities. By 2020, the entrance examination had grown to include 14 new central universities and four state universities. The real question here is whether the Common Entrance Test is more discriminatory than the previous method of admitting students based on their performanc
Read more

To Stay Safe Online – Tips for Teens

-
Image
Children today are safer than ever before in a variety of ways. Better public safety, less “stranger danger,” and more logic however the twenty-first century brings new challenges to child safety, particularly when considering the digital environment. Children are voracious consumers of digital technologies. Despite all of the opportunities provided by the digital world, such as playing, learning, and socializing, digital engagement poses risks to children’s safety that can have real-world consequences. Many risks in the digital world are analogous to those in the physical world. Bullies can reach their victims online just as easily as they can in the schoolyard. Children can be exposed to hate speech and racism through the virtual games they play, videos they watch, and communication apps they use. Some risks, however, are more specific to the digital environment, such as sending or receiving sexually explicit messages online, or the use and misuse of children’s data. Pop-ups in app
Read more