SHOULD INDIA LAY MORE EMPHASIS ON IMPARTING FINANCIAL EDUCATION TO ITS YOUTH?

India needs to be the ‘Sharmaji ka beta’ in bringing this important field of study into mainstream
education so as to ensure that an essential life-skill such as this is imparted to its youth.

Saaramsh M. S. || Law Student

India had been known, historically, for its impeccable education systems and institutions. Be it the
historic Takshashila University or the Nalanda, India was always considered a mystical land with
a vast culture and as the best place to obtain education. India’s tryst with scriptures and other texts
coupled with a venerable Gurukul system was the reason for its fame. The advent of the British
brought in a sea of change to this system when they introduced modern schooling with divided
curricula and studies in specific subjects.

Indian education system today is bereft and plagued by various issues hampering the true
development of students and in shaping their worldly outlook. The system has evolved in a manner
which aims for outwardly development while laying no emphasis to a student’s character and
mental awareness. Students are taught that academic ability is a metric of excellence and that the
aim of every student must be to attain a respectable grade in school or university.

There is a stark difference in the lives of students in India as compared to those overseas. The
primary factor that results in this contrast is the fact that the Indian system is flawed in various
aspects. We shall be discussing the primary problem that the system faces – inequality in the
importance that is granted to different subjects or fields of study. The Indian education system
(read Indian parents) has always been a firm believer that the science stream tops the hierarchy
and any desire for success can be attained in pursuit of a study in science. This belief has even led
to much emphasis being laid to academic institutions in the science field while any others are
neglected blatantly. The common notion is that only a student who is incapable of studying science
will opt for other streams of study. Only a truly ‘capable’ student will be able to handle the
complexities of studying science as a subject. This preconceived idea of what makes an ideal
student causes students interested in other fields of study to be looked down upon and ridiculed at
worst. This drives scores of students into giving up their interests and joining an engineering or
medical course only to turn out to be mediocre professionals in those fields. The metric for
determining a student’s success is no longer bound to the extent of classrooms or defined by
performance in an academic sphere alone. The future success of students is entrusted upon
providing opportunities for them to learn, develop, and strengthen core life skills they need today
and more importantly tomorrow as successful graduates.

In today’s heavily economic oriented world, the importance of finances and taxes as educational
subjects has failed to gain importance in India. The purpose of education is to make an individual
ready to face the tasks that he or she might face in the future. India is one country that lays more
emphasis on calculus than on learning to files one’s taxes. Financial elements play a very integral
role in our lives nearly on an everyday basis. In this day and age, managing finances and preparing
for financial emergencies is of utmost importance. A sense of financial responsibility is crucial for
the modern youth.

Financial literacy plays a pivotal role in helping consumers save adequately in order to provide
sufficient amounts as income while in retirement; and to avoid piling debts that might lead to
defaults, bankruptcy, and foreclosures. Financial education is a means to acquire a skill set not
only to make money but also to retain, increase and invest in new opportunities and venture into
new areas of expansion. Money, contrary to philosophical opinion, is and will always be one of
the critical resources in our life, just like time. It is not just an academic skill but really a
fundamental life skill and this makes its learning imperative. Financial literacy further
encompasses an ability to understand money and how it works – including its management,
investment, and expenditure. It works in the favour of the consumers when they are financially
sound and aware as it enables them to make learned and well-informed choices on investments
that can eventually result in magnifying their income and resources. It is vital to note that finance
need not be professional choice. Even when you are busy with your own professional life in any
other field, investing your money in the right places i.e., the stock market or the money market,
can help you become more profitable.

India’s entire culture can be altered if a sound system of financial education is implemented to
students. Firstly, unemployment will drop as more people will be aware of more money-making
avenues than relying on a professional education. Secondly, the work culture will undergo a
tectonic shift by virtue of increased investment from more factions of the society. India is a country
where people still hold on to the archaic belief that real estate is a safe investment and everything
else is a matter of chance. This may be partly true. However, this is the mentality that will see
change if more and more people understand that the fluctuations can be read and be used in your
favour. Thirdly, and most importantly, India’s financial destitute exterior shall give way to a braver
front and make the country self-sufficient. This will allow for the mind-set of the individuals to
consolidate the fact that financial markets are the way ahead and a way to maximise your profits.
The youth, forming the majority of the current population, will be the ones who will most likely
be the ones to assimilate this change and bring about changes to their own futures accordingly. All
this will collectively cause more and more people to be interested in participating in the economic
efforts of the country. How India will be incorporating this approach and if a day will even arrive
when this very important facet shall be considered, only time will tell.