Against the backdrop of people increasingly falling prey to financial scams, the draft of the Kerala Curriculum Framework on adult education and continuous education has emphasised financial literacy for them.
The draft framework, released by Minister for General Education V. Sivankutty here on Monday, says financial literacy is necessary for all, as it teaches one how to use wealth correctly. As the foundation of financial literacy is spending according to one’s income, without such knowledge, individuals and families will be unable to earn any wealth.
Priority in utilisation of money is a critical aspect of financial literacy. It will help plan family budgets and regulate income and expenditure.
The draft lays stress on finding sources of income, spending money in hand wisely, curbing excesses, and remaining safe from exploitation.
It calls for proper understanding of banking services. People should make a thorough study of various banks, their working and features before identifying one suited to them.
Pointing out that suicides owing to non-repayment of loans taken from financial institutions at huge interest are not uncommon, it says loans should be taken only during emergencies. One should be disciplined enough to avoid spending money frivolously and to repay the loans regularly.
Investment is another important area of financial education. A part of the income should be set aside as investment for future requirements, says the document. Investment could be done in banks, land, gold, buildings, share market, besides using it as capital for new ventures.
It urges adults to be wary of financial institutions defrauding people after promising them huge interest and returns. Investment should be made only in recognised institutions after in-depth study.
The draft also touches upon modern ways of fraud, such as getting hold of OTPs through messages purportedly from banks and using these to withdraw money from accounts illegally. It stresses the need to ensure that one’s bank accounts are protected.
Online trading and online games are other areas where there is possibility for fraud. Reputation of online sellers should be verified while making online purchases or one may be saddled with poor quality products, have to pay more than warranted, or not get the product at all.
Getting addicted to online games may also result in losing money and reaching the verge of suicide. Instant online loans are yet another potential trap that could result in harassment from the lenders if one is unable to pay the interest, says the draft.
