City schools bank on financial literacy to get students future-ready

Schools in Mumbai are boosting financial literacy, teaching students budgeting and investment skills, crucial for their future and personal stability.

MUMBAI: Most students learn maths, science and history—but what about money? From managing pocket money to understanding savings and investments, and learning how government policies influence economies, financial literacy is a life skill that textbooks often skip. Recognising how vital it is in shaping a young adult’s future, schools in Mumbai are equipping students with tools to make smart financial choices.

City schools bank on financial literacy to get students future-ready

It’s what underpinned a recent session at Lilavatibai Podar High School in Khar, where students of Classes 9 and 10 dived into the world of budgeting and financial strategies. Divided into groups, students analysed the financial priorities and government policies that shape household budgets in various countries.

With surprising confidence, students compared India’s strong emphasis on savings with Japan’s disciplined financial culture, Russia’s unpredictable economic conditions, and Australia’s high minimum wage alongside its robust social welfare policies.

Why financial literacy?

Financial literacy is being embraced by schools across Mumbai as it was recommended by the New Education Policy 2020 as a means to make education more relatable. Although outside the formal curriculum, the programme has caught on as schools have begun to recognise its relevance.

A big push came during the Covid-19 pandemic, which wrought financial havoc globally, from impacting entire economies to intensifying the need to make smart financial choices as millions were laid off and livelihoods dried up.

And it’s not only the CBSE, ICSE and IB that are introducing their students to the world of finance. In its recent budget, the Brihanmumbai Municipal Corporation (BMC) announced plans to roll out a financial literacy mission in the 2025-26 academic year. This initiative, with a budgetary allocation of ₹12 crore, is aimed at students from Classes 6 to 9 in municipal schools.

Civic education officer Rajesh Kankal said the BMC wants to modernise the learning process. “We want to help students learn about managing money through teaching materials, field trips and practical training based on concepts like budgeting, investment, loans and insurance,” he said.

Most schools design their own financial literacy programmes, while some are guided by the Handbook on Financial Literacy released by the Council for the Indian School Certificate Examinations (CISCE), which provides a structured and age-appropriate approach to financial literacy. State board schools use a less structured approach. While some organise workshops on money management a few times a year, others get students to set up fun-fair type events, which are managed exclusively by the students.

Impact of the programme

Jimmy Ahuja, head of financial literacy at Orchids The International School, said they focus on a practical approach. Field trips to banks and financial institutions, for instance, are a big part of their programme, as are simulations, such as mock-stock activities. They also take students to visit shop vendors to understand financial planning in business.

“These interactive exercises help students understand market trends and develop critical thinking skills, all in a risk-free environment,” explained Ahuja. “Financial literacy helps students understand budgeting, saving and investing. It builds confidence and teaches them to plan ahead.”

Nellori Gyana Deepika, a Grade 6B student of Orchids The International School, said she was rivited to learn about how businesses are launched, financial models and budgeting. “We created a mind map about the business plan, cost, and area to set up. We also learnt about digital banking.”

Kamalesh Tank, a Class 10 student of Lion MP Butha Sion Sarvajanik High School, Sion, said, “For the last three years, I have run a mehndi stall at my school’s fun fair as a mehndi and tattoo artist. We planned our budget, factoring in production and purchase costs before deciding on the final pricing of our services. It has helped me understand basic financial concepts.” Kamalesh said he earned a profit of ₹1,000 at the last fun fair.

Sheila Alexander, principal of Lilavatibai Podar High School, believes financial literacy has changed the way students approach money. “Younger students are learning to differentiate between needs and wants, while older students are engaging in more complex topics like investment strategies and banking.”

Veena Shrivastava, Campus Head of Gopi Birla Memorial School and Birla Open Minds, Malabar Hill, said the programme has impacted parents as well. “We have seen students teach their parents about the safety measures involved in using cards and online banking. Some students have even encouraged their parents to open bank accounts, showing a growing sense of financial independence and awareness.”

Gunjan Sanghvi, A Class 8, student of the school, said, “From understanding how to write a cheque to recognising the crucial role of insurance, this journey has been truly empowering.”

A life lesson

Pointing out the importance of financial literacy in the formal education system, Krishan Mishra, CEO, Financial Planning Standard Board of India (FPSBI), a non-profit, said, “Financial literacy is not just knowledge; it is a life skill that everyone must acquire. We were never taught this in school, yet it affects every aspect of our lives and is essential for personal stability. The consequences of financial ignorance are severe, and are frequently linked to financial distress.”

On a more philosophical note, Mishra remarked, “Wealth is not built merely by earning but by wisely managing and growing money. Without it, navigating life will always be a struggle.”