You have begun to learn to make sensible financial choices , as adults do. One day, your elder cousin tells you that he nearly did something stupid by buying a video game with his pocket money frantically because he had not thought. Later, he did not know that he would require some money in school to buy supplies and snacks.
This gave you an understanding that you make choices concerning your life every day; these choices may be as simple as what you do with your rs. 200 pocket money and these life choices can impact you today and in the future. You choose then to find out how to become better with money choices.
What Banks Do and the Role of Banks in an Economy
You have recently opened your first savings account and received a debit card. Your parents told you that the banks have a lot more than safe-keeping money, they provide loans, guide business and propel the economy.
One day you heard that there are various forms of banks such as RBI, commercial banks, payments banks, small finance banks and neobanks and got confused on how they contribute to the lives and growth of the people and country.
Here, you are interested in finding out more about what banks actually do and why they are of concern to every person, including you as students!
Types of Insurance
You are visiting your grandparents’ house in your village, along with your mother and father. You usually go by train but this year the tickets were sold. So now you’re catching a connecting train to another town (which is on the way). You will stay there overnight and the next day you will take a bus to your village. Since you are visiting them after 2 years you are also carrying some expensive gifts for them and the villagers.
Spending plan and Budgeting Project
You’ve just received Rs. 2000 from your parents to buy all your school supplies for the next term — including notebooks, pens, a new backpack, lunchbox, water bottle, and even some fun stuff like stickers or a cool pencil pouch.
Your best friend, Ravi, got the same amount, but he went straight to the market without any plan. He ended up buying too many things he didn’t really need — like three different highlighter sets, a fancy notebook he barely uses, and even a snack he saw on display. By the end of the day, he realized he forgot to buy his science textbook cover and had no money left for savings.
This made you realize something important — spending money wisely isn’t just about what you want now , it’s also about planning for what you’ll need later .
Monetary goals
You have decided that you want to become more responsible with your money. You’ve heard from your parents that setting goals helps people save and spend wisely. So, you’re planning to set some goals for yourself — both short-term and long-term — so that you can buy things you want, avoid borrowing money, and maybe even help your family one day.
Building an Emergency Fund
You have been reading how necessary it is to be prepared in moments of surprise in life. Your uncle tells you one day about his friend who had an emergency, his laptop was damaged before a major presentation at the workplace, and he had to purchase a new one immediately.
This was an eye opener to the fact that even children have emergencies -such as misplacing your school bag, breaking your spectacles, or being in need of some urgent medicines. And now, you are wondering how you can be ready in case of similar eventualities by setting up your own emergency fund .