From Algebra to Assets: A Case for Finance in Education

 Introduction

Aniketh’s parents were elated when he graduated from a prestigious school with an outstanding academic record. His name on the Roll of Honour was a moment of immense pride. He continued to excel, landing in a coveted job at one of the most sought after companies. His parents were extremely happy and satisfied to see him settle in his career. They dreamt of a truly comfortable life for him.

Soon, he purchased a luxurious home with  massive loan. Credit card bills from impulsive online shopping piled up. Between EMIs and debt, his finances spiraled out of control-and he had no idea how to manage them.

Aniketh’s story isn’t unique. Many young achievers master quadratic equations and grasp the intricacies of the quantum mechanical model of atom. Yet, much of this knowledge, acquired over years, often fails to prepare them for navigating life’s practical challenges—especially when it comes to managing personal finances. This disconnect obviously raises a critical question : Shouldn’t personal finance be as fundamental to education as math and science?

In today’s fast-paced world, it is essential to broaden the horizons of education beyond the traditional curriculum to include real-life skills. It is high time that various aspects of personal finance—such as budgeting, taxation, savings, and investments—earn a rightful place in the classroom. Financial education equips students with practical tools to make prudent and timely decisions, helping them manage their futures effectively. Despite finance being one of the most important facets of life after graduation, it remains an underrated subject in academic curricula worldwide.

This article explores the journey from abstract, traditional subjects like mathematics and sciences to the practical, real-world applications of financial literacy, delving into why and how finance education should become a core part of schooling.

Relevance to Present Society

Financial literacy is a life skill, just as crucial as reading, writing, and doing basic mathematics. Money management has always been a fundamental part of life — in the past, present, and undoubtedly, in the future.

However, the way we interact with money has evolved significantly. In earlier generations, a large portion of the population relied on agriculture and allied sectors for livelihood. Those who pursued higher education often secured government jobs, which came with comprehensive security — including healthcare, pensions, and other social protections. The limited financial knowledge they acquired through life experience was usually sufficient to manage their needs and achieve their goals.

Today, the scenario is vastly different. Rapid technological advancements, globalization, and urbanization have reshaped both economic structures and individual aspirations. The rise of the private sector unlocked a plethora of career options, but often without the long-term job security and social safety nets once standard in public employment. At the same time, increased life expectancy and rising living standards demand more proactive financial planning, especially for retirement.

In this transformed socioeconomic landscape, basic financial literacy is no longer optional — it is essential.

Early education in personal finance equips individuals with the skills to make informed decisions about spending, saving, investing, and future planning — all of which are critical in navigating today’s dynamic and often unpredictable world.

Why Financial Literacy Must Be a Core Part of College Education

Early adulthood — typically before the age of 40 — is a critical window for making life-shaping financial decisions. It's the phase when individuals launch careers, start families, and begin planning for long-term goals. Yet, many step into this stage without the tools to navigate the complex world of insurance, taxation, investments, and emergency preparedness.

Poor financial choices made during this time can have cascading effects — not just on economic stability, but also on physical, mental, and emotional well-being. In fact, success and happiness often hinge on the delicate balance between health management and wealth management.

The Guidance Gap

While parents and elders often wish to guide the younger generation, many lack updated financial knowledge. Their advice, though well-intentioned, can be misaligned with modern realities. For example:

• Encouraging investments in risky or opaque instruments like unregistered chit funds or ill-timed real estate deals

• Advising savings in bank fixed deposits without understanding that inflation-adjusted returns are essential for long-term goals.

In the absence of formal financial education, it is highly likely that youngsters increasingly turn to social media, where high risk instruments like derivatives are often promoted as quick paths to wealth.

As a result, financial decisions are frequently driven by fear or greed rather than patience and informed judgement undermining the principles of long- term wealth creation. These trends highlight the urgent need to integrate financial literacy into the academic curriculum

The Case for Financial Education in Colleges

Given the stakes, it's imperative that students are equipped with financial literacy before they graduate. This includes:

• Understanding the power of compounding and long-term investing.

• Learning how to evaluate financial products and avoid scams.

• Building emergency funds and insurance coverage.

• Navigating taxes and retirement planning.

The Cost of Ignorance

Financial mistakes made in one's 20s and 30s can haunt a person for decades. Unlike academic errors, these aren't easily corrected — and they often come with a heavy price tag. Therefore, it is very much appropriate to see that the students are equipped enough in these aspects before they step out of college education.

Why Financial Education Belongs in School Curricula

At first glance, introducing personal finance in schools may seem premature. But in today’s hyper-connected world, early exposure to financial concepts offers profound benefits. Children are growing up in an environment shaped by social media influence, digital marketplaces, and dual-income households. These factors increase the likelihood of impulsive spending, peer pressure, and financial misjudgments — often placing strain on family finances.

Moreover, the easy availability of credit cards, buy-now-pay-later schemes, and online loans poses a serious risk to financially uninformed youth. Without proper guidance, they may fall into debt traps before even entering adulthood.

By teaching students about budgeting, taxation, saving strategies, the difference between good and bad debt, and the power of compounding, we equip them with the tools to:

• Resist impulsive buying and overspending

• Understand the value of money and the effort behind earning it

• Make informed choices about financial products and services

• Plan for short-term needs and long-term goals

Financial education fosters a mindset of responsibility and foresight. It helps students appreciate the consequences of their financial decisions and empowers them to take control of their future — not just academically, but economically.

Challenges and Solutions

There are challenges educators face in integrating financial education into existing curricula:

• Curriculum Overload: Students already juggle multiple subjects. A redesign of the academic framework is needed, emphasizing real-life relevance over rote learning.

• Lack of Expertise: Many teachers may not have formal training in finance. This can be addressed through guest lectures by financial experts and orientation programs for educators.

Learning from global markets

Studying and adapting personal finance curricula from countries like the UK and USA - where such education is already integrated can offer valuable insights. These models can help address initial hiccups in the implementation and provide a clearer roadmap for effective execution without our own academic systems.

Bridging the Gap Between Classroom and Life

It is high time that educators and policymakers acknowledge the significance of financial education and bridge the gap between academic learning and real-life challenges. While algebra remains the heart of mathematics and sciences essential  for academic and career advancement, money management is the heartbeat of everyday living - the foundation for financial independence and asset creation.

We equip children with the tools to build careers - Isn’t it time we also empower them to build lives?

By GV.Madhumayi