Bank visits to apps: 6 smart ways to improve financial literacy among students

Most of us are comfortable with digital payments today, which saw rapid growth in and after the COVID-19 pandemic. Smartphones have become an integral part of our lives today and in the process, we have started relying on mobile banking apps and cashless payment gateways for our day-to-day money matters.

At the same time, financial fraud continues to be on the rise and one of the primary reasons is the lack of financial literacy among the youth. Not to mention how many of them are unaware of how to manage their money, from savings to investment and tax filing.

Dr Monika Mogla, HOD-Commerce, Apeejay College of Fine Arts (ACFA), explains, “Financial literacy refers to the knowledge and understanding of various financial products and services available in the market. It helps individuals to manage their money, personal finances, investment, and tax planning. Its main purpose is to safeguard individuals from financial frauds and scams and to create awareness about various investment avenues available in the market by which individuals can earn passive income.”

As per a 2019 survey by the National Centre for Financial Education (NCFE), only 24 per cent of the rural population and 33 per cent of the urban population were found to be financially literate.

Also Read: States may adopt RBI’s financial literacy programme for schools

“Improving financial literacy among students is very important. It requires a combination of early education, practical experiences, and real-life examples, and empowers students to make informed decisions about their finances, both now and in the future,” Dr Mogla emphasises.

She suggests some ways to improve financial literacy among the youth:

1. Integrating financial literacy into other subjects: Financial literacy can be integrated into other subjects like Math, Economics, and Social Science. This can help students understand the basic concepts and terminology of finance at an early stage and its importance in their daily lives. Students should read financial newspapers like Financial Express and Economic Times, to name a few.

2. Bank visits and interactive sessions: Bank visits and interactive sessions like workshops and seminars by financial institutions or the National Institute of Securities Market (NISM) SEBI can also prove to be helpful in levelling up the financial literacy of the pupils.

3. Learn about credit and debt: It is important students learn to manage these responsibly. They should understand the impact of credit scores, interest rates, and how to avoid debt.

4. Use technology: Technology can be a useful tool in teaching financial literacy. Use online resources like YouTube videos, budgeting apps, and stock market simulation websites/apps like Moneybhai, Groww, and OctaFX to learn how the market works and smart ways to invest in it.

5. Provide hands-on experience: Real-world experiences like opening a bank account, online banking, or investing in stocks, can help one apply what they have learnt in the classroom to real-life situations.

6. Online courses: There are several online courses available on various edtech platforms. Students can enroll themselves in these courses to broaden their knowledge.