Nurturing Future Niveshaks: Fostering Stock Market Literacy Among School Students

Abstract

Financial literacy is crucial for empowering individuals to make informed decisions in today’s evolving economic landscape. As India moves toward achieving its vision of a Viksit Bharat by 2047, equipping the next generation with essential financial knowledge is of utmost importance. Among the various facets of financial literacy, understanding the stock market stands out as a vital skill for wealth generation and sound financial decision-making. However, stock market education remains underdeveloped in Indian schools, particularly among younger students.

This study explores the necessity of stock market education for school-going children, highlighting its long-term benefits for their financial futures. With the growing significance of the stock market in India’s economy, integrating this knowledge early is crucial to building a financially aware generation. The research adopts a mixed-method approach, combining both primary and secondary data. Primary data collected through the responses of the school students from SSC, CBSE and ICSE boards helped to gauge their understanding of the stock market and its relevance. Secondary data sourced from government reports, academic literature and SEBI’s published articles, including the initiatives like ‘Securities Market Trainers Program’ and the ‘Investors Awareness Program’. While these initiatives are steps towards making stock markets familiar, their implementation in schools is still limited.

By analysing these data sources, the study seeks to emphasize the importance of early financial education with particular focus to share market instruments and its potential impact on student’s future financial behaviour.

The research strongly advocates for the integration of stock market education into school curricula to ensure students develop financial literacy from a young age. Such an initiative would not only prepare students for making informed financial decisions but also cultivate a culture of financial awareness in future generations. The paper concludes with actionable recommendations for policymakers, educators and financial institutions to work collaboratively in designing and implementing structured, age-appropriate financial literacy programs. These programs should focus on stock market concepts and broader financial principles, ensuring they are accessible and relevant to young learners, offering a conducive learner friendly environment, thereby equipping them with the tools to navigate the complex financial landscape of the future.