The importance of “Finance Gyan” in school education
My father always told me that it is more important to be happy with your job than earning a lot of money. But as I grew up, I saw how vital money could be. All my friends wanted jobs with the highest pay because everyone wants to live a comfortable life without worrying about a penny. And I think there is nothing wrong with that as long as we play with our values.
On the other side of the spectrum, there is a world where no person can dream of becoming rich. The only thought that worries them at night is getting food on their plate the next month. Money for them is the daily source of survival. Of course, they would love to have more but getting a decent job or starting their own business is no child’s play when you are so far behind the race.
On both sides of the spectrum, one thing is common; people struggle to manage money. People who have money to fulfil their basic needs spend it on unnecessary things they don’t require, increasing the consumption rate & in some cases harming the environment. Whereas people who don’t have enough money struggle to understand investment strategies & plans for their future. And, somewhere, our Education System plays a role in this.
My Experience with managing Money
Growing up in a middle-class family in India, I have seen my parents struggle with money. My father took a loan for every new thing that came into our house, Car, Refrigerator, Air Conditioner and whatnot. In addition, he had to take an education loan for both my sister and me. Even after seeing my father struggle so much, I never realised why he had to take so many loans, and I never bothered to ask.
The first time I got some money from school was in 10th grade for Academic Excellence. I got Rs.5000, and just after getting the money, I spent it on clothes, every single penny. It never even occurred to me that I can use that money to start investing. I don’t think I even knew what does investment means?
Even when I started earning, I spent 80% of my salary on shopping and fun for almost six months. So when I finally had to live on my own, I realised how much money I had wasted. And I decided that I need to educate myself on different investment options & start planning my future.
But even after educating myself theoretically, I was always scared to go to a bank and talk to someone about the investment options I want to try. One time I asked one of the bank staff to tell me more about a passion fund I wanted to start. That person didn’t know about it and started suggesting some other mutual funds to give a lump sum. Instead of making it more evident to me, she made me more confused, and I decided to wait for few more months before I invest.
The Role School can play.
I believe that our education system can play a significant role in solving the problem of financial illiteracy. Kids must understand from a very young age that money will save them tomorrow if they save money today. Today, many apps help us understand mutual funds & the stock market like Groww, ClearTax, Kuvera, etc. But it would be so much better if kids can save more than they spend. If kids can help their parents in financial decisions, and if everyone is financially independent, even the homemakers.
More than anything, if we can at least give the students the confidence to handle money to know what to do when they go to a bank and do not invest in the wrong places.
My hope for our Education System has no limits, but if we can change a single thing about it, I would want it to have an essence of Finance Gyan❤
