Why Financial Literacy Should Be Compulsory in Indian Schools and Colleges
NISM Director Sashi Krishnan explains why financial literacy belongs in Indian schools, how AI is changing finance education, and where new jobs may emerge.
AC Team
Many students learn algebra, science and history in school. But how many learn to manage a salary, read a loan offer or spot an online scam? These skills can shape a person’s future, yet they often receive little space in the classroom.
Sashi Krishnan, Director of the National Institute of Securities Markets (NISM), believes financial education should become compulsory in schools and at the undergraduate level. His view comes at a time when young Indians use digital payments, open investment accounts and take loans earlier than ever.
Why financial literacy matters
Money decisions are part of daily life. Students will need to plan a budget, choose a bank account, understand taxes, compare loans and buy insurance. They may also invest for goals such as higher education, a home or retirement.
Without basic knowledge, young adults may learn through costly mistakes. A person may accept a loan with a high interest rate, invest in a product they do not understand or share personal details with a fake customer care agent. Financial literacy can help people ask the right questions before they make these choices.
It also covers simple habits. Students can learn how to track spending, build an emergency fund and tell the difference between a need and a want. That last skill can be hard when every app seems ready to sell something before breakfast.
What students should learn
A school course on money should focus on real situations, not only definitions. It can include:
- Budgeting and saving from a monthly income
- Bank accounts, interest and digital payments
- Loans, credit scores and responsible borrowing
- Insurance and the value of financial protection
- Taxes and basic salary documents
- Mutual funds, shares and investment risk
- Retirement planning and long-term goals
- Online fraud, phishing and safe use of financial apps
The lessons should match the student’s age. A younger child can learn saving through a simple money plan. A college student can study credit cards, income tax, investment risk and employment benefits.
NISM’s role in financial education
NISM already runs investor awareness and financial literacy programmes across India. Its resource person network covers 27 states and 400 districts, with about 920 trainers. The institute says it has conducted more than 13,200 investor awareness sessions and reached over 800,000 participants.
It also works with more than 1,000 higher education institutions. Its National Financial Literacy Quiz has reached over 400,000 students, while its financial market webinars and masterclasses have attracted a large audience.
These efforts show how schools, colleges and industry bodies can work together. NISM also offers e-learning courses, skill modules, faculty training and structured learning paths in areas such as mutual funds, derivatives, investment advice, research and risk management.
Finance jobs will need more than finance knowledge
The financial sector is changing as fintech, artificial intelligence and digital investing grow. Students who want a career in finance will need to understand markets, products, valuation, risk and regulation. They will also need skills in data analysis and technology.
Useful areas include statistical modelling, machine learning, financial econometrics, algorithmic trading and behavioural finance. Training in Python, data tools and financial technology can help students work with modern finance platforms.
NISM’s programmes include learning through securities market simulation, data science, regulatory technology and Bloomberg labs. Students may also take part in internships and professional certifications. This type of practical learning can help bridge the gap between a classroom and a workplace.
How AI is changing financial learning
Artificial intelligence can support students by giving targeted practice and instant answers to routine questions. It can also make market simulations more realistic. Teachers then have more time to focus on complex topics, discussion and judgement.
At the same time, students must learn how AI affects the finance industry. Companies use it for research, trade execution, fraud checks, credit decisions and customer advice. Students need to know how to use these tools, check their results and understand their limits.
AI can process data, but it cannot replace human judgement in every situation. A strong finance professional will know both the tool and the reason behind the decision.
More finance jobs may come to smaller cities
India’s financial services sector is expected to add many jobs in the coming years. Growth is spreading beyond major cities to tier-two and tier-three locations.
Fintech may create roles in digital payments, product management, fraud analytics and regulatory technology. Other opportunities may grow in data science, cybersecurity, credit risk and machine learning. Wealth management and investment advice also need skilled workers as more first-time investors enter the market.
Risk, compliance and market surveillance will remain important as regulation grows. Investment banking and fund management will continue to attract candidates, but these roles may have fewer openings and strong competition.
Students can prepare by building a mix of skills: market knowledge, technology, communication and ethics. They can start with a personal budget, take a recognised financial education course, follow trusted sources and practise checking every investment claim before acting on it.
