Mumbai, Jan 22: Every year on National Youth Day, people celebrate the energy, ideas, and potential of young people. India has one of the youngest populations in the world, and this youth power can shape not just the country’s future, but the global economy as well. However, as we talk about education, careers, and skills for the future, there is one life skill that still does not get enough attention financial planning.
Most students leave school and college knowing how to solve complex equations or write long answers, but many are not taught how to manage money, plan for goals, understand taxes, or make informed financial decisions. Yet, these are skills they will use every day for the rest of their lives.
Financial planning is not only about investing or wealth creation. At its core, it is about making smart choices, understanding consequences, and preparing for life’s uncertainties. This is why financial planning must be treated as a basic life skill and integrated into education from an early stage.
The Reality Young People Face Today
Today’s youth step into a world that is more financially complex than ever. Digital payments, instant credit, buy-now-pay-later options, personal loans, and investment apps are easily available. Access is good, but lack of understanding can be risky.
Many young adults take education loans without understanding the repayment terms. Some start earning but struggle with budgeting, saving, or handling taxes. Others fall into debt traps simply because they do not understand interest, credit scores, or the long-term impact of borrowing.
These challenges are not a result of lack of intelligence or ambition. They arise because financial education is missing from the formal learning system.
Why Financial Planning Should Start at School
Children start developing their habits very early. These include spending, saving, and decision-making habits. Learning basic money concepts in school helps students develop a healthy view towards money.
This does not have to be complicated at the level of a school. Students can be taught simple ideas such as:
The difference between needs and wants
Why Savings are Important
How money is earned
Basic Budgeting with Pocket Money
The value of patience and planning
When they comprehend the fundamentals, they grow into adults who are more confident and responsible with money.
College is the Right Time for Practical Financial Learning
College students are closer to real-world responsibilities. Many start earning through internships or part-time jobs. This is the perfect stage to introduce more practical financial planning concepts.
Colleges can include the following topics:
Income and Expense Management
Understanding Bank Accounts and Digital Payments
Principles of Insurance and Why It Matters
Introduction to investments
Understanding tax and compliance
Setting short and long-term financial goals
Financial planning creates confidence and independence
When the young understand how money works, they feel more in control of their lives. Financial confidence gives them informed choices-be it to choose a career or start up a business or plan higher education.
It also helps them say no when needed. For instance, a student who understands debt and interest is less likely to take unnecessary loans or misuse credit cards. Financial awareness builds discipline and clarity.
Financial Education Is About Values Too
Financial planning is not all about numbers. It teaches important life values such as:
Responsibility
Discipline
Long-term thinking
Risk Awareness
Ethical decision-making
These values are closely connected with personal and professional success. Education in financial planning thus helps in shaping skilled professionals who are also responsible citizens.
The Role of Teachers and Institutions
They mould the young minds and shape them into responsible adults. With proper training and motivation, teachers can teach it in a very interactive and related way.
Educational institutions do not necessarily have to offer completely new subjects. Concepts of financial planning can be easily integrated into existing subjects, workshops, or life skills programs. Real-life examples, simple case studies, and discussions can make learning effective and enjoyable.
Why Financial Planning Matters for the Nation
Understanding money helps one generation strengthen the economy. People handling their finances well save more and invest wisely and lean less on debt. That adds stability to both households and the country.
People who are financially educated are also less likely to be taken in by scams or dubious advice. With online financial tips everywhere, not all of it is trustworthy. Education helps young folks tell good guidance from risky shortcuts.
Preparing Youth for Choices in Real Life
Life does not come with a guidebook, but education can prepare students to make real-life decisions. Whether weighing job offers, planning further study, balancing family responsibilities, or preparing for the inevitable emergencies, money planning matters at every turn.
By integrating financial planning into learning, we provide young people with practical tools that will stay with them for life. It’s not about creating a nation of financial experts; it’s about creating financially capable people.
Dante De Gori, CEO, Financial Planning Standards Board (FPSB) International (FPSB Ltd.) said, “Every National Youth Day is a reminder of the immense energy and promise young people bring not only in shaping their nation’s future, but the global economy as well. Yet, while education systems prepare students for academic and career success, one critical life skill is often overlooked: financial planning”.
Today’s youth are navigating an increasingly complex financial landscape marked by digital payments, instant credit, and easy access to investments often without the foundational knowledge to manage these tools safely and responsibly. Financial planning is not merely about wealth creation; it is about informed decision-making, understanding long-term consequences, and being prepared for life’s uncertainties.
Introducing financial planning education early can empower young people to manage money wisely, avoid debt traps, and make confident life choices. Financially aware youth create stronger households, more resilient economies, and a more secure future for nations.”
A Call to Action on National Youth Day
As on this Youth Day, we reflect upon the strength and promise of our youth, it is time to rethink how we define education. It isn’t sufficient to have just academic knowledge. The life-skilling process, particularly financial planning, should be integrated into the learning journey.
All governments, educators, institutions, and families have a part to play. The earlier we start and the more practical the learning, the more confident, clear, and responsible will be the young people in facing the future.
Financial planning is a life skill, not an optional one. And the best time to learn it is now. ( Press release contributed)
