If a student from class 6 is taught about how a frog’s digestive system works and why metals expand when they are heated, it is equally important to acquaint her with how a bank account works and how prices respond to demand and supply. Yet, the problem with the Indian education system is that a student gets his first nodding acquaintance with finance or economics only in Class 11; and that too, only if he opts for the commerce stream. If he chooses science, he can actually sail through his entire school (and college) life without learning anything about the time value of money, the effects of credit, inflation or the working of markets. All he has learnt about finance are a few math problems on percentages and profits or losses on transactions between Ram and Shyam. The neglect of economics and finance in schools seems to stem from the received wisdom that young minds should be focussed on higher learning and not be polluted by such mundane subjects as trade, commerce or money. Yet, think of how basic knowledge of accounting can help you manage your household finances well; or how understanding inflation can help you make good spending and saving decisions. Financial literacy could promote greater good too. Indeed, if Indian households had a good understanding of finance, unscrupulous promoters could scarcely perpetrate rudimentary financial scams such as on such a mass scale. Nor would the RBI officials have to periodically urge Indian housewives to buy less gold. Therefore, why not make a beginning right now and introduce finance, business and economics into the school curriculum? It will make all the difference to India’s household savings, exchange rate, fiscal situation and prosperity, in just a dozen years from now.
Posted on: Thu, 13 Nov 2014 12:36:51 +0000
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