National Education Day: Why Financial Education is Critical For Students

India celebrates National Education Day on November 11 to honor the birth anniversary of Maulana Abul Kalam Azad, the country’s first education minister. Azad’s visionary efforts shaped India’s educational landscape, with milestones such as the establishment of the University Grants Commission (UGC) and the Indian Institutes of Technology (IITs). While education in India has evolved over the decades, one area that remains underserved is financial literacy—a skill critical for navigating today’s complex world.

The Financial Literacy Crisis in India

Despite the increasing importance of financial knowledge, a SEBI (Securities and Exchange Board of India) study reveals that only 27% of Indians are financially literate. Basic financial skills—such as budgeting, saving, managing debt, and investing—are essential for ensuring long-term stability and success. Yet, many young adults enter the workforce without a solid understanding of how to manage their finances, which can lead to poor financial decisions, debt, and missed opportunities.

In an age of rising living costs, job uncertainties, and consumer-driven pressures, it is more critical than ever for students to gain the knowledge and tools to handle money wisely. By introducing financial education in schools and colleges, we can equip future generations to make informed financial decisions, secure their futures, and contribute to the country’s economic growth.

Why Financial Education Should Be Part of School Curricula

Schools and colleges play a pivotal role in shaping students’ futures, not just academically but also financially. Incorporating financial education into the curriculum can empower students to take charge of their finances from an early age. Financial literacy helps young people:

• Build good saving habits
• Plan and budget effectively
• Invest wisely for future growth
• Understand the importance of managing debt responsibly

Ajay Lakhotia, Founder & CEO of StockGro, advocates for integrating experiential learning in schools and colleges. Modules on investments, compounding interest, and risk management—facilitated by industry experts—would provide hands-on experience and practical knowledge that students can apply in real life.

“While existing curricula prepare students to earn a living, expanding it to include financial management and investment strategies will equip them to navigate real-world financial challenges,” Lakhotia explains.

The Growing Need for Financial Literacy

The world is becoming increasingly complex, with new financial products, digital payment systems, and investment opportunities emerging daily. Without a foundational understanding of how these systems work, students may struggle to manage their money effectively, especially as they transition to adulthood.

Financial education not only promotes personal security but also strengthens the economy by creating more informed, responsible citizens. As India becomes a global economic powerhouse, equipping students with financial knowledge will be key to fostering a generation that is financially resilient and capable of contributing to the nation’s growth.

One inspiring example of promoting financial literacy comes from Vidhi Miglani, a Class 12 student from DPS Kaithal, Haryana. She created DhanSarthi, a digital platform dedicated to educating women about personal finance. Vidhi’s initiative aims to empower women by making them financially literate, helping them make smarter financial choices and achieve financial independence.

On a different note, National Education Day also brings attention to the powerful legacy of Justice Hans Raj Khanna, whose courage and dissent during the Emergency period in India inspired generations. Born in 1912, Justice Khanna’s dissenting judgment in the landmark ADM Jabalpur case (1976) upheld the rights to personal liberty during a time when many others chose to comply with government pressures.

Justice Khanna’s principled stand cost him the position of Chief Justice of India in 1977, despite being next in line. His sacrifice, however, cemented his place as a symbol of integrity and courage, inspiring his nephew, Chief Justice Sanjiv Khanna. This story of defiance and honor serves as a reminder of the importance of standing up for one’s principles, a lesson that should be imparted to students as part of their holistic education.

As India celebrates National Education Day, it is crucial to recognize that financial literacy should be a priority in schools and colleges. With financial challenges becoming more prevalent in today’s society, giving students the tools to understand and manage money is vital for their personal growth and the prosperity of the nation. By embedding financial education in the curriculum, we can ensure that future generations are not just academically proficient but also financially empowered to lead successful and secure lives.