Learning about money

Be it at school or college, most teachers inspire us and teach us about life while some choose to become our friends; all the same, they all have an influence on us. The long hours spent with them along with the life lessons that many impart, leave a lasting impression on our minds. Yet, it is highly unlikely that students would have learnt any lesson on money from them, which is rather strange because money plays a critical role in everyone’s lives. In school and college, students are taught to study hard, steer clear of vices and embrace good conduct, but the point on money management is completely missed out.

A class for teachers

When it comes to money, even teachers can learn a few lessons. After all, there is no end to learning and getting better with their own money. Take the case of Dr Uma Shankar, principal, SIES College of Arts, Science and Commerce, who feels she should have started investing much earlier. “I started understanding savings only after earning a big sum, which was perhaps an error,” she explains.

In a similar vein, Ramakrishnan KS, professor, DY Patil University says: “I should have started investing when I was young to benefit more from the compounding effect of my stock investments.” Teachers, like doctors, do not have a strict retirement age as many of them work beyond the retirement age, which allows them to increase their working years and thereby earnings to compensate for any poor financial decision.

Russel Almeida, a DJ, who also runs a DJing school, learnt his lesson the hard way when the nightclub he was associated with for over eight years shut down overnight. “Newly married, setting up a home with my wife who had just forayed into freelancing and suddenly to find myself without a steady job and both of us without regular income was a shocker,” he rattles. Thankfully, he had some financial investments to fall back on, but not everyone is that lucky.

Learning a lesson

For very long, teaching has been viewed as a very noble profession and the respect that teachers earn form their students is legendary. A lot of importance is given to a strong foundation when it comes to academics and life, something to swear by even in these times of Google, where answers to anything are available at the tap of a key.

“Children should never be exposed to expensive lifestyle. They must be taught to value every pie. I remember I could not afford even books and dresses, but could read more books by going to footpath book stalls in Matunga. Life was beautiful albeit with fewer things to flaunt,” says Dr Shankar.

She swears by the all-time golden rule—spend less than what we earn and accepts that in terms of money management, she has grown over the years and learnt with experience.

Dr Ramakrishnan too believes in valuing frugality over extravagance, an approach that held him in good stead when it came to funding his higher education. “My father was self-employed, so I always felt the need to build a kitty for my own education since the risk quotient of his business was high,” he reasons.

Almeida too is a firm believer in learning from experience. “I was promised money for an event I had to curate. But that never materialised and I was disillusioned by the experience,” he adds. The lesson learnt: be prompt in taking advances and deal with finances more prudently and seriously.

Words of wisdom

The education system in India is nowhere close to dispensing financial advice to students in a structured manner—something that teachers feel needs to change. “It must be taught from school days. Students should learn to value the things that they carry to school,” affirms Dr Shankar. Knowing the basics of judicious saving and spending can equip kids with the skills to navigate the challenges they will face in future.

“I know of so many young adults who don’t feel the need to invest or know the value of financial returns. They come to understand it only when they have an EMI of some kind on their hands,” points out Russel. The burden of loans can be a highly effective teacher, but you would do well to learn the right financial lessons much earlier. “It is a good idea to instil values like frugality and financial discipline right from school days; if not, then at least in college,” emphasises Dr Ramakrishnan. Given the lack of structured financial education, however, the onus of educating their children rests with parents, who can be the best tutors in these matters.

Almeida’s first brush with the world of financial instruments was an insurance policy from LIC way back in 2003 and his first mutual fund investment started in 2005. “The returns I earned in a few years helped me invest in my first full-fledged DJ console, which allowed me to teach many hearts and hands that wanted to become disc jockeys,” he says.

In contrast, Dr Ramakrishna burnt his fingers with a unit-linked insurance policy (Ulip) bought in 2007, an investment decision he rues to date. “I had to bear heavy losses due to the careless and irresponsible attitude of the life insurer’s fund managers,” he fumes. His first set of investments – recurring postal fixed deposit and a money-back policy, however, fared much better as they delivered the expected returns.

What is important when it comes to money is not to be casual with it and at the same time ensure that you keep yourself abreast with changes in the financial world. Teaching is a noble profession, and it is time teachers took the onus of imparting financial wisdom to students even if it is not part of any curriculum.

preeti.kulkarni@outlookindia.com