Strong Foundation of Financial Education must For Students, says Rajesh Bhatia

The educationist and founder of the TreeHouse chain of schools believes financial literacy is the key to personal and national abundance

India has a literacy rate of more than 77 percent as per the 2022 National Survey of India but on the other hand, we have low financial literacy as a 2019 study by the National Centre for Financial Institution indicates. It states that only 27% of Indian adults are financially literate.

Educationist and founder of the TreeHouse chain of schools, Rajesh Bhatia says, this should worry us as a nation and adds, “This level of financial literacy and the ever widening economic gap in society does not bode well for our future. This is why I feel a strong foundation of financial education must be provided to students in schools. Financial literacy is the key to personal and national abundance. A financially literate person  makes  better monetary choices  and this also contributes to the economic health of the country.”

Bhatia finds it unfortunate  that a large number of people in rural areas, due to poor financial knowledge, still depend on informal savings avenues like chit funds or don't save at all.  
 
He also points out that financial matters are usually never discussed with children and as they grow older, the ease of online purchases and digital payments makes them oblivious to the value of money. He says, "Books like 'The Latte Factor' provide an insight into how unmonitored daily expenses add up and I feel, even at primary level, we can teach children how to manage money better. An attitude of financial sagacity if inculcated early will help them to save money, avoid  monetary frauds online and have a clear blueprint of their financial future."
 
Bhatia cites a Cambridge University study which says that a person’s approach to money solidifies by the age of seven and adds, "This means that financial  education can start as early as grade I through simple activities. Schools can play a big role in teaching children the concepts of saving, making purchases etc in a fun and easy manner. Even their pocket money is a good starting point for imparting financial education while in higher classes, students can be taught about how the banking industry works, how we can budget our earnings and make the most of our savings and how to allocate money to our dreams, our needs and our future. This will help them develop a certain financial discipline, even before  they start earning."
 
Many institutions including Treehouse are already beginning to provide financial education. The National Centre for Financial Education envisioned by the Reserve Bank of India has certified over 150 schools as ‘Money Smart’ through a training program. The National Stock Exchange is also offering financial education in over 4000 schools across six states in India. Various startups have also introduced customised prepaid cards for teens which will teach them to handle their finances somewhat independently.  
 
 "At TreeHouse, banking is one of the life-skill courses that we offer. Ten sessions in the course cover basics and latest trends in the banking industry and also the employment opportunities that the banking sector offers. We also have courses in law, E-commerce, aviation, hospitality and business management because we feel, it is time to grow beyond rote learning and offer skills and knowledge to students that they can really use in their lives,"concludes Bhatia.