Financial Literacy For Gen Z: Why School Curricula Aren't Enough

By Sachin Jain, Managing Partner, Scripbox

To understand why school curricula fall short in imparting financial literacy to Gen Z, we first need to understand the context in which this generation has grown. Gen Z represents the first generation to come of age entirely in the digital era, a world shaped by the post-liberalisation and post-colonial economic shifts of the late 20th century. Events such as the tech boom of the early 2000s, the collapse of the twin towers, and the subsequent expansion of global debt and financial balance sheets have all defined the volatile economic environment that Gen Z has inherited.

One of the defining characteristics of this generation is its deep familiarity with technology. Gen Z is extremely tech-savvy, platform-fluent, and aware. They like to make informed decisions and prefer to seek knowledge before acting. However, they also have a short attention span and are guided largely by self-acquired values and personal belief systems that they themselves have written and justified. This independence of thought is both a strength and a challenge when it comes to managing money.

When we examine the school curriculum, even though it has evolved to provide more flexibility, interdisciplinarity, and new forms of learning, financial literacy remains largely absent. The pedagogy has matured; students today can choose subjects, learn through various media, and achieve objectives in multiple ways, but a comprehensive, active effort to build financial understanding is still missing. The education system is adapting, but it has not yet fully caught up with the real-world financial realities that young people face.

At the same time, Gen Z's relationship with emotions and decision-making is still evolving. Despite being informed and connected, they struggle to deal with emotions such as anxiety, fear, and overconfidence, all of which strongly influence financial behaviour. The rising incidence of mental health and lifestyle issues among youth hints at this emotional volatility. Moreover, because India's economy has seen an almost continuous upward trend for over a decade, except for short-lived disruptions like COVID-19 or demonetisation, this generation has not truly experienced prolonged market downturns or economic crises that could teach financial prudence and resilience.

As a result, there exists a large gap between Gen Z's perception of money and their actual financial maturity. While many young people are entering the world of investments early, the trend data shows that they are also the ones most drawn toward "get-rich-quick" schemes and speculative investing. The surge in demat account openings, especially among the youth, the preference for small-cap and sectoral mutual funds, and a strong inclination toward direct investing routes all point to a generation enthusiastic about wealth creation but often lacking a comprehensive understanding and patience.

Of course, there are exceptions, a growing class of smart, cautious Gen Z investors who take informed financial decisions and even seek professional advice. But broadly, the financial behaviour of the generation reflects impulsiveness and incomplete judgment, outcomes of limited financial education and emotional immaturity in managing risk and reward.

Therefore, the reason school curricula alone aren't enough is clear: financial literacy cannot be taught as a subject; it must be cultivated as a value system. The responsibility does not rest solely on educational institutions; it also lies with parents, mentors, and society at large. While Gen Z is intelligent enough to grasp the methods and mechanics of money, what they truly need is guidance in the value and ethics of money, learning patience, discipline, and the principle that financial stability is earned, not entitled.

If everything in life is viewed as an entitlement, as is often the case in an instant-gratification culture, the younger generation may never evolve into better savers or planners for their future. Hence, alongside academics, we must help Gen Z appreciate the value of money, understand the emotional side of financial decisions, and develop the maturity to handle the volatility of both markets and life itself. Only then can financial literacy become meaningful and enduring, far beyond what any school curriculum can offer.

(Disclaimer: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)