Needs for introducing financial management in the school curriculum

Students learn loads of theories to pass the exams, but they do not learn or assimilate practical skills that help them in their lives in advanced academic and post-academic phases. Financial management is one of the skills students must learn. It gives students the maturity to manage their money more sensibly and make informed decisions. However, even the commerce stream of several schools does not teach students the pragmatic skill of financial management.

Skills, as such, last long in an individual’s life and enable them to have a more sensible approach toward things. Through this blog, we will understand the significance of financial management and its various benefits.  

Financial management- overview

Financial management teaches students to handle their expenses efficiently and have a sensible approach to handling money. Regardless of the career path one follows, financial management is a crucial skill. It contributes to a person’s financial well-being in the present and the future. It provides students with knowledge and teaches them budgeting, saving, and investing skills. It protects them from over-expenditure or falling into debt. It creates a pathway for students to have a successful financial future. 

The careful planning and decision-making process involved in financial management develops the intellectual framework of students and enables them to manage their finance through a quasi-static process. It creates a sense of responsibility and accountability among students. 

4 Reasons why schools must include financial management in their course

Understanding the significance of budgeting, saving, and investing allows students to have financial stability in the future. Schools should overcome their lack of resources and inconsistencies while teaching this subject. Financial management is one of the skills necessary for the holistic development of students. Students may take this as an additional life skill or may propagate on this path to develop a career in this particular field. Financial management offers career options like investment banking, portfolio management, risk management, financial analysis, etc. However, choosing a career option is subjective and depends on an individual’s aptitude. 

1. Teaches students about the value of money

The three distinct sections of financial management, budgeting, saving, and investment, teach students many valuable lessons and enable them to understand the cash flow. Budgeting allows them to track their income and expenses and make sensible application of the available money, and they do not spend more than earnings. With budgeting, they learn the value of saving. Saving is a crucial aspect of financial management that provides aid to a person during an emergency or unfortunate turn of events. Saving also opens the gateway for investment and allows students to sensibly invest at appropriate places and increase the amount they already saved. These all, in total, create a financial discipline that enables them to avoid debts and financially unfavourable circumstances. 

2. Enables students to plan their expenditures more sensibly

The main reason for high anxiety among working individuals is uncontrolled expenses. The general idea is higher salary or income will provide financial stability. However, the observation delivers contrary evidence to this general idea. The lack of money management tends to create additional issues for working professionals that cause financial inconsistency and seize peace of mind. Financial management teaches students the value of financial discipline and enables them to have optimal physical, mental, and financial conditions. 

3. Encourages to save money from an early age

Students realising the significance of money in life tend to become financially more responsible. Their sense of responsibility develops a habit of saving from an early age. It allows them to be financially independent during emergencies and use their savings sensibly. 

4. Improves the financial literacy

Financial literacy is the knowledge of financial concepts and the ability to make sensible financial decisions. Financial literacy develops a mindset among students that enables them to remain prepared for the future and achieve their financial goals. As an adult, they can make more informed financial decisions. Financial literacy enables students to determine the difference between a good investment and fraud. In total, it contributes to the financial well-being of a person. 

Concluding remarks

Financial management is an essential skill that must be taught in schools. It develops a maturity among students that provides a better framework for managing expenses and savings. Students with an understanding of financial management develop into finer individuals. National Public School is best for parents seeking CBSE schools in Electronic City.