One of the most oft-repeated concerns in education today is that it is not preparing students for the challenges of the future.
Based on traditional learning styles and content, education still focuses on bookish knowledge, instead of how to exactly use that knowledge in the real world outside the classroom.
An important skill that should be taught from an early age is financial responsibility. This needs to be specifically taught from middle school onwards to inculcate a sustainable and positive relationship of the individual with the world of finance.
Financial education will equip students with the skills to enable them to make informed and responsible decisions about money.
At its most basic, it helps people understand and value financial independence and confidence. It teaches children how to budget and spend wisely. This could reduce the chances of falling into debt or suffering financial stress in the future.
At any time in history, financial planning is challenging, but today, the challenges are manifold.
In addition to existing stress points of urban living and an unpredictable job market, there are additional issues of easy credit and aspirational lifestyles that impact youngsters. Knowing when and how to leverage economic comfort will go a long way in ensuring financial comfort and confidence.
Financial education also encourages responsible consumption. People become more aware of the difference between needs and wants, and this will automatically lead to more thoughtful spending, avoiding impulsive buying to some extent.
Such a mindset will promote stability, not only for individuals but also for families and communities, contributing to a healthier and more sustainable economy.
When people know how to manage their income effectively, they are better prepared to handle unexpected expenses and plan for long-term goals such as higher education, family responsibilities, or retirement.
Schools should play a more central role in introducing financial education in a structured and systematic way. This would entail gradual sharing of information across all levels, combining theoretical with practical learning opportunities.
Rather than treating it as a separate subject, financial literacy can be integrated into existing curricula, including mathematics and social studies. This approach will help students see the practical relevance of what they are learning.
For example, finance can be an interactive teaching game. Activities like participating in mock stock market investing or savings challenges will provide a context for students to experience the pitfalls and opportunities of real-world scenarios. Such a simulation will also make abstract concepts more concrete, immediate and relevant to their social context.
Part of financial literacy today also includes awareness of digital tools and applications for tasks such as budgeting and tracking long-term goals.
Even though technology will inevitably develop and change, awareness will give confidence to students to continue to learn about such platforms.
Financial education is not only important to students but also to the community, which will benefit from a well-informed and confident generation.
Dr Sandhya Rao Mehta
The writer is Associate Professor, Sultan Qaboos University
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