The world around us often perceives education as being confined to academics, with curricula traditionally designed to focus on subjects like mathematics, science, and language. While these are essential, this approach overlooks the importance of fundamental concepts like “Financial planning”. This change is essential, as money matters, knowingly or unknowingly, influence everyone’s lives, starting as early as childhood.
By gradually introducing financial planning concepts—starting with basic lessons on saving and budgeting in primary years and advancing to topics like investments and credit management in secondary school—educators can improve students' ability to make informed financial decisions that will benefit them throughout their lives.
The big question here is how do we teach financial planning at the very beginning in the students' childhood. Let us understand a few practical ways to introduce financial planning.
Strategies to introduce financial planning in school:
Incorporate into Existing Subjects:
Teachers are often stretched thin with packed schedules, meeting curriculum goals, grading assignments, and managing classroom dynamics. The idea of introducing an additional subject like financial planning may feel overwhelming and impractical within an already demanding workload.Let us understand this idea with an example of how to integrate financial planning with a mainstream curriculum.
1. Mathematics:
Instead of treating financial planning as an entirely new subject, teachers can weave budgeting, saving, and compound interest into math lessons.
Concepts in Context:
Budgeting: Understanding income and expenses is crucial. For example, if a child receives ₹500 as pocket money and spends ₹300 on essentials, they learn to calculate what remains for savings or discretionary spending.
Interest Rates and Growth: Teach students how banks reward savers through interest, showing how money grows over time using simple calculations.
For instance, Several U.S. high schools have adopted comprehensive financial literacy programs by embedding financial concepts into subjects like mathematics and social studies. For instance, math classes cover budgeting skills and compound interest calculations, while social studies explore the economic lessons behind financial decisions
2. Thirty minutes in a week:
Imagine Spending just 30 minutes a week on financial planning to nurture the students to develop a mindset to manage their money matters effectively. It’s not about overhauling their schedules or adding extra pressure—it’s about creating a regular opportunity to learn something non-academic which will help the students in the long run.
The academic year can be structured into three focused categories, allowing students to gain a comprehensive understanding of Budgeting, Investing, and recognizing Financial Frauds.
The idea may seem new and unclear, but there are examples that demonstrate it is well worth the effort.
One notable example is New Zealand, New Zealand sets a strong example by integrating financial literacy into its school curriculum through the Sorted in Schools program.
For instance, a group of teenagers from a high school in Auckland developed a community project after learning about financial planning, where they taught younger students how to save for long-term goals. Years later, many of these students reported being better prepared for university expenses and were able to manage student loans effectively, showcasing the long-term impact of early financial education.
Reward-Based Learning
This reward-based idea is an experiential learning method. Basically this method is about creating a classroom currency and making the students aware about the currency. Then using this currency as a means to get things done in the classroom for any needs in the classroom.It sounds like a game, but it’s much more—it’s a hands-on concept in financial education.
This idea, known as a classroom economy, transforms the classroom into a mini financial ecosystem where students experience the challenges and rewards of managing money in a safe, supportive environment without the actual currency.
A classroom economy involves giving students roles with salaries (like banker or shopkeeper), by using the unique classroom currency, and setting up a store where they can buy items or privileges. They also pay for expenses like “desk rent” and can save their earnings in a classroom bank to earn interest. This hands-on system teaches budgeting, saving, and financial planning in a fun and practical way.
For example, if a student wants to change their desk, they would pay a fee using coins from their classroom bank. Similarly, if a student arrives late to class, a small amount is deducted from their account as a penalty.
At the end of each month, students who actively participate and manage their finances well can receive additional academic credits as a reward. This practice not only motivates students but also encourages them to engage more responsibly in the mini financial ecosystem of the classroom.
Students used their money to pay for desk rent and save for a classroom auction. One student remarked, “I didn’t know saving money could be so rewarding—I got the best seat in the auction!” Another learned to avoid fines by managing behavior carefully, which reinforced responsibility.
On a closing note, these strategies will help educators achieve the desired results in teaching financial planning without the need for an extra curriculum or additional workload. They make financial planning both accessible and enjoyable, creating an engaging learning experience for students.
Additionally, if you're interested in offering financial planning as a standalone program, or if you're seeking a well-designed and structured financial literacy course, then KCITE has a structured Financial literacy program to develop the learners into Financially literate individuals.
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