InvestorQ : Do you think finance and investing should be a part of basic education?
tanvi Patel made post

Do you think finance and investing should be a part of basic education?

Ishita Jain answered.
1 year ago
The education system today leaves a lot to be desired. Even so, I believe that financial literacy should be part of the school’s curriculum. Our own New Education Policy recognizes financial literacy as a critical life skill and has included it in the adult education program. But financial literacy should also be taught at the school and college levels.

Debt and/or a lack of savings can cause considerable hardship in a person’s life. And it doesn’t just cause daily stress. Financial problems can lead to divorce, poor health, depression, and bankruptcy. Keep in mind that numerical ability is not financial literacy. Even engineers from IITs and management grads from top B-schools have no clue about how to manage their money. These new income earners learn about finance the hard way when they revolve their credit card balances at prohibitively high rates or get saddled with costly home loans or lose money in risky investments.

Understanding money management leads to financial health and positive attitudes around money. People’s attitudes around money can be instrumental in shaping their character, plus promotes the desire to give back. It’s good to structure financial management lessons to inculcate the right habits and attitudes towards money. For instance, living within one’s means is a key tenet of prudent financial planning. The money management curriculum can include chapters on budgeting, saving, and investing.

Children should be taught how to optimize the use of resources and how to distinguish needs from wants. When a student is financially literate, they don’t just make smart decisions with their money. They build good habits that trickle down to their families, their communities, and eventually, the nation. It’s important to empower the next generation and teach them to handle their money wisely. And that can be done effectively when finance and investing are a crucial part of basic education.