Financial Education in Schools

How schools in India and elsewhere teach financial literacy, what research says about its effectiveness, and how families and schools can work together, plus a recap of the module.

Families are the main influence on children’s money habits, but schools can help ensure every child learns core skills.

In India

The Reserve Bank of India runs Financial Literacy Week each year and has published financial literacy material for schools.
The National Centre for Financial Education, set up by financial regulators, runs programmes for school students and teachers.
CBSE and state boards have included financial literacy topics in some subjects, and the National Education Policy 2020 emphasises life skills.
SEBI and stock exchanges run awareness programmes.

Around the world

Many countries include financial education in school curricula. In the United States, a growing number of states require a personal finance course for high school graduation.

Does it work?

Research is mixed but improving:

Some early studies found limited long-term effects.
A 2022 meta-analysis of many randomised studies by economists Tim Kaiser, Annamaria Lusardi, Lukas Menkhoff and Carly Urban found that financial education programmes, on average, improve financial knowledge and behaviour, with effects similar to other educational interventions.
Programmes work best when they are practical, timely and linked to real decisions.

Practical approaches

Simulations: running a pretend budget or business.
Real accounts: school banking programmes.
Just-in-time lessons: teaching about loans before students take them.
Projects: planning an event with a budget.

Families and schools together

Parents can reinforce school lessons at home by discussing what children learned and applying it to real decisions.

Module recap

Money habits form early, and parents are the biggest influence.
Young children learn through play, choices and waiting.
Pocket money and Save-Spend-Share jars teach budgeting and goals.
Teens need real responsibility and guidance on online risks.
Honest family conversations, trust and small mistakes build skills.
Teach girls and boys equally, and plan for children’s futures.
Schools can complement what families teach.

The school market

A school runs a "market day" where students plan products, set prices, track costs and calculate profits. Students learn about budgeting and trade-offs by doing, and discuss their results at home.

Thinking financial education is only the family's job

Schools can help ensure all children learn money skills, especially those whose families may not teach them.

Key takeaways

The RBI, NCFE, SEBI and school boards support financial education in India.
A 2022 meta-analysis found financial education improves knowledge and behaviour on average.
Practical, timely programmes work best.
Families and schools together build strong money skills.