How Can Ed-tech Tools Help Students Learn Financial Literacy Skills 

How Can Ed-tech Tools Help Students Learn Financial Literacy Skills 

“I am not a finance person”, “I don’t know how to file tax returns”, have you heard young people around you say these things? Surprisingly, many students don’t even know the basics of financial literacy such as debts, taxes, budgeting, and many more. 

Sadly, there is no focus on financial education in our schools and colleges, even though finance and money are something that everyone has to deal with. So, in this section, we will be talking about some common financial skills or topics that students can learn, even if it is not taught in schools. 

Budgeting Skills 

Budgeting is one of the most crucial things to learn when managing finances. Various LMS portals have self-paced courses on different topics that students can use to learn basic financial skills. There are many facilities like cards and online payment gateways which allow students to impulsively spend without thinking much. In college years, most students have educational loans, so managing their part-time job or monthly food expenses is necessary. 

Students should learn how to manage budgets, save for emergencies, and cut unnecessary expenses. It will help them reach their financial goals and avoid debts. 

The Power of Compounding 

All of us know that we should save money, but due to inflation just saving money in our piggy bank or account won’t make us financially stable. Saving money means our money deposited should multiply after some years which is possible only if you can take maximum advantage of compounding. 

So students should try to understand the application of compound interest in debts and savings. Managing this concept and making better financial decisions can save you some bucks. 

Investing to Achieve Long-Term Financial Goals 

Investing is a much-needed financial habit that students need to develop from an early age. You will see its effect in the long run if you start now. It is a myth that a surplus amount is needed to be an investor. You can start investing with any amount at any age, just be consistent and invest some amount every month. Investing will help you build wealth in the long run and is the first step to financial stability. 

Understanding Salary, Income, and Cashflow 

Our young generation struggles with the basics of finance such as budgeting and allocating their income. In the YOLO (You Only Live Once) culture, they don’t understand the need for weekly, monthly, and annual budgeting. 

Usually, when young adults join the real world, they focus more on the needs like food, clothing, and rent, but tend to forget about taxes, health insurance, and other aspects. Your salary is not necessarily your income. Understand how your Cash Flow is regulated. 

Maintaining Credit 

If students can learn about managing credit and credit card debt from an early age, it can greatly benefit them in the long term. So, students should try to learn about credit and even take required courses. When students leave home or go to college, credit cards can be helpful if used wisely. It has the facility of cash back or points, so maintaining good credit can help you avoid financial pitfalls. 

Learn About Inflation 

Schools nowadays are becoming more technically advanced using school management software. Moreover, these software are helping teachers reach out to their students anytime and make it easier for students by launching new spectrum internet specials offer for students. Through these advanced software, teachers can teach multiple topics to their students at once and also help them track their progress. Schools should include topics like inflation and recession in the curriculum. Students should know how to thrive financially and make inflation work in their favor. 

Understanding Debt

Every youngster should understand how credit, loans, and debts work. You can also read self-help books on finance to increase your knowledge. Debt plays a considerable role in our financial lives, so we should be aware of its pros and cons. 

Income Tax 

Students in college should understand income tax and how the government collects taxes. When adults start earning, they have to file tax returns, which can be a tedious task without proper knowledge. So, learn about taxes and government policies to be financially sound. 

Conclusion 

We learn the concepts of gravity, the Pythagorean theorem, and other topics that rarely come in handy in real life. But important subjects like personal finance are not included in educational institutions. But due to the availability of resources like ebooks, finance books, and others, it is easier to learn anything. So, take the initiative and make yourself financially literate now.

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