Good financial habits can start in the classroom

Utkarsh Kumar

My interactions and sessions with teachers, parents, and students across schools have been eye-openers when it came to financial education.

• Despite realizing the importance of financial literacy, a significant portion of stakeholders felt that it was too complex a subject for students to grasp and understand.
• Many teachers and school leaders also cited a shortage of time and pressure to adhere to the curriculum and other associated tasks in school.
• Many assumed that financial education would be a time-consuming affair.

This article aims to dispel such myths and misconceptions.

A common point I emphasized in all my interactions was that financial literacy is not only about teaching children the concepts of money, credit, debit, and net worth, it is also about building age-appropriate behaviours and understanding that will shape their attitude and approach towards money as adults.

According to researchers at the University of Cambridge, most children by the age of seven are capable of grasping the value of money, delaying gratification, and understanding that some choices are irreversible or will cause them problems in the future. Without formal guidance on money-related matters, most children miss out on early experiences and lessons that go a long way in determining their financial future.

Teachers in the classroom can promote financial literacy through simple practices that foster behaviours and habits beneficial not only to students’ financial lives but also are good traits in general. Additionally, these practices can be applied by teachers in their own personal lives.

The following practices have assisted teachers and school leaders in promoting good financial habits in their classrooms and schools and can be used by teachers depending on the grade and age-appropriateness.

Realizing the joy of giving

As teachers, we have the power to shape the future by instilling the values of giving and empathy in our students. By teaching children the joy of giving, we not only benefit society but also nurture self-worth, kindness, and compassion in our young learners.

A simple way to promote this is by placing a donation jar in the classroom. Make sure that you communicate the purpose of the donation drive clearly to students. Encourage children to save from their expenses or pocket money and put in the donation jar. Use the contributions to help the needy and make your students realize that it was their savings that impacted a change and benefited someone. This is a simple and effective way to teach children about giving and the impact that small contributions can have. Moreover, doing this regularly will help them develop empathy and instil this habit for a lifetime.

Another way of making children realize the joy of giving could be an activity we conducted with grades 1 and 2 in a school. Every week, 15 minutes were assigned as ‘giving time’, where children were encouraged to ‘give’. It could be giving time to their peers in the classroom and helping them out, penning thank you letters for students who have helped them over the week, or giving small gifts out of their savings to express gratitude to friends and non-teaching staff. It is important for children to realize that ‘giving’ or ‘contributing’ is not always monetary and one can also contribute with time, attention, and helping the person in need. At one such event in a school, I remember a touching moment when some students went to the housekeeping staff and gave them thank you notes and toffees.

Such activities act as powerful tools to make children realize that they can bring about a positive change in society, develop saving habits, a habit of contributing, and, in turn create a better world for everyone.

Differentiating between needs and wants

Teaching children the distinction between needs and wants is a crucial life skill that they will carry into adulthood. As educators, it is our responsibility to ensure that our students understand this concept.

It is essential to help them understand that some things around us are vital while others are dispensable. Students who learn to differentiate and classify objects into needs and wants exhibit stronger saving habits and better financial management skills. Circle time, in classrooms, can provide an ideal setting to discuss and encourage students to express how they would categorize objects in their daily life as needs or wants and guide them to be prudent with the things they can do without.

During online classes, a prominent activity that we did was to ask children to look around them and point to at least three objects that they would categorize as ‘wants’ and an equal number of objects they would categorize as ‘needs’. A class discussion would follow on how our parents work hard to earn and provide for all our wants and needs, leading to a discussion on how we can minimize our wants, save money, and become responsible members of the family.

To drive the point home, another activity we performed was assigning students different roles, such as a teacher, doctor, or farmer, and asking them to identify the needs and wants of their character. This will help children understand that different professions have different requirements and priorities.

Such activities, while being simple and easy to implement, will help children lead a life of financial harmony in adulthood. Conducting these activities can also help teachers reflect on their financial lives and analyze their needs and wants.

References

• Habit Formation and Learning in Young Children, by Dr David Whitebread & Dr Sue Bingham (University of Cambridge)
• Activities mentioned from Niiv Learning Labs sessions conducted over 50 schools.

The author is a financial advisor, trainer and founder of Niiv Learning Labs. He has worked with thousands of individuals in improving their financial lives. He can be reached at utkarsh@niivlearning.com or on his Instagram handle @utkarsh.simplifies.