Let me begin with a real-life incident.

A fifth-grade student asked his father for 100 rupees. The father politely asked for a cause while the boy's grandfather flung 1,000 rupees at him, saying, "This is all yours,". He looked at his son for being reluctant for his beloved grandson. This emotional liberality twisted financial responsibility, motivating the boy to seek more money consistently, claiming his grandfather's gift. The incidence exhibits a gap in the grandfather's financial awareness, as well as the coincidental teaching of poor financial habits in the early-age student. It emphasizes the significance of including financial literacy into school curricula to develop responsible behaviors in young students.

Financial literacy is key

The Organization for Economic Cooperation and Development (OECD) defines financial literacy as the awareness, knowledge, skills, attitude and behavior required to make effective financial decisions for personal well-being. The fundamental concepts of financial literacy include increasing earnings, planning for the future, protecting financial well-being, spending wisely and borrowing responsibly for development. According to American economist Alan Greenspan, financial education needs to start early in life in order to have an influence that encourages young students to make wise financial decisions. Furthermore, financially knowledgeable guardians might discuss their income and expenditure status with youngsters to teach them how to spend money wisely based on their level of comprehension. Integrating financial literacy into school curricula is critical for preparing students to make informed decisions, set financial objectives and avoid potential traps.

Importance for Nepal

According to the "Baseline Survey on Financial Literacy in Nepal" conducted by Nepal Rastra Bank (NRB) in 2022, Nepal's national financial literacy rate of 57.9 percent remains a major concern, showing that more than half of the population lacks basic financial understanding. These findings highlight the necessity of targeted financial literacy activities in Nepal, particularly its incorporation into school education as a foundation of financial literacy to bridge the knowledge gap across generations and encourage informed financial decision-making. Nepal's central bank, the NRB, promotes financial literacy to assist people make informed financial decisions. The 2022 Financial Literacy Framework envisions financially capable individuals for Nepal's prosperity. The NRB's Unified Directive, 2080, mandates that banks and financial institutions (BFIs) devote one percent of net profit to corporate social responsibility (CSR), five percent to financial literacy of such funds (at least 10 percent in each province) and incorporate financial literacy programs into annual plans.

According to the directive, financial awareness and literacy programs should be carried out with the goal of CSR, rather than to promote their enterprises. NRB promotes demand-side improvement through podcasts, messaging, films, success stories, policies, digital finance communications and training programs such as ToT and manuals to increase public financial knowledge and competence. These programs must be integrated into school curricula in order to reach the target population at an early age to achieve the best possible program outcomes.

Integration with school curricula

Age-appropriate strategies may be used to include financial literacy at various educational levels. Curricula may be developed as a learning plan based on the most effective models that meet local and global standards. For example, interactive learning strategies such as games, simulations, quizzes and storytelling may be used to teach essential concepts such as saving, spending and recognizing the value of money at the primary school level. Secondary school students can learn about financial decision-making, debt management and budgeting through projects and case studies. Collaboration with financial institutions on hands-on activities and real-world applications can help to improve learning at all levels.

Local governments play an important role in developing financial literacy by incorporating it into local policies and school curriculum. In doing so, the Center for Education and Human Resource Development (CEHRD) can play a critical role in incorporating financial education into local policies and curricula as a standard financial literacy framework aligned with national education policies, as well as assisting local governments in contextualizing them to meet community needs. Local governments working with multi-stakeholder partnerships can provide technical assistance and design teacher training programs on how to effectively deliver financial literacy lessons, develop age-appropriate learning materials, and create feedback mechanisms to adapt curricula to local socioeconomic realities. This strategy guarantees that financial education is integrated into Nepal's educational system in a practical, inclusive and sustainable manner. South Africa’s “financial literacy for all” initiative, which includes a nationwide curriculum, can serve as a model for Nepal in reaching communities through schools and local centers ensuring that the curriculum reflects our evolving local financial landscape.

Conclusion  

Integrating financial literacy into school curricula, providing resources and collaborating with local governments, financial institutions, training organizations and other stakeholders can help ensure that programs follow a consistent curriculum structure. Schools can focus on practical financial skills, and communities may help with awareness efforts. “Save First, Spend Smart!" is directly related to financial literacy since saving should be considered a priority rather than an afterthought. This habit enables younger students to save consistently and practice sound financial management later in life. A financially literate generation will result in less debt, more savings and more financial independence, bolstering Nepal's economic stability and prosperity while also assuring a prosperous financial future for everyone.

The author holds an MPhil degree in education from the Kathmandu University