What They Don’t Teach in School: Basic Financial Skills Every Teen and Young Adult Should Know
Why Money Skills Matter More Than Ever
Let’s be honest: school teaches us a lot, but it rarely teaches us how to actually survive with money. And in a world where swiping a card or clicking “Buy Now” is easier than boiling water, financial mistakes happen faster than we realize. One bad move—a credit card debt, a student loan you didn’t fully understand, or ignoring savings—can haunt you for years.
But here’s the good news: money management is a skill. And like any skill, it can be learned. You don’t need to be rich or a math genius—you just need to know the basics and apply them consistently.
Budgeting: The Real Art of Adulting
The 50/30/20 Rule (And Why It Works)
This isn’t some hard formula—it’s a starting point. Think of it like this:
50% of your money goes to things you need (food, rent, Wi-Fi)
30% can go to things you want (Netflix, Zomato, shopping)
20% should be saved or invested (future-you will thank you)
You don’t have to follow this to the decimal. But if you’re blowing 80% of your money on food delivery, you’ve got to realign.
How to Make a Simple Budget That Works
Step 1: Track where your money goes for a week or two
Step 2: Write it down (literally, use Notes, Excel, or an app)
Step 3: Cut what doesn’t add real value
Step 4: Create a plan you can actually stick to—not a fantasy plan
It’s less about restriction and more about intention.
Banking Basics: Don’t Just Download the App—Understand It
Types of Accounts You Should Know
Savings Account: Your main account. You earn interest, store money, and use it for daily life.
Current Account: Used by businesses. You likely don’t need it unless you’re doing something entrepreneurial.
Fixed Deposit (FD): Lock in money for a fixed time, earn higher interest.
UPI, Net Banking & Wallets: Use Them Right
UPI is fast and free. Pay rent, split bills, shop online.
Net banking gives you control—set up FDs, pay EMIs, etc.
Wallets (Paytm, PhonePe) are good for offers, but don’t stash your savings there.
One rule: never share your OTP. Even if the caller says they’re from the bank. They’re not.
Credit: Powerful Tool or Dangerous Trap?
What Is a Credit Score?
It’s like your money reputation. The number (out of 900) shows how trustworthy you are with debt. Higher the better. It affects your ability to get loans, rent an apartment, and sometimes even get hired.
Building Good Credit from the Start
Get a student credit card or secured card
Buy things you can afford—then pay the card in full, on time
Don’t use the full limit. Keep usage low.
Don’t apply for five cards in a week
Good credit gives you financial freedom. Bad credit? It’s a slow-motion trainwreck.
Saving Smartly: Small Steps Make Big Impact
Set Clear Goals
Don’t just “save money.” Save for something.
Rs. 5,000 for a birthday gift
Rs. 15,000 for a solo trip
Rs. 30,000 for a safety cushion
Write it down. Make it real.
Build an Emergency Fund (Yes, You Need One)
This is not optional. Life hits hard—phones break, bikes crash, friends bail on rent.
Aim for 3–6 months of expenses. Keep it somewhere safe but accessible (like a savings account or a liquid mutual fund).
And don’t touch it unless it’s a real crisis—not a sale on Myntra.
Investing: You Don’t Need to Be Rich to Start
Mutual Funds, SIPs, and Index Funds
Mutual Funds: Your money + other people’s money, managed by experts
SIPs: Start investing as little as Rs. 500/month
Index Funds: Low-cost, long-term, and beginner-friendly
The idea? Let your money grow while you sleep.
The Power of Compounding
You invest early, your returns earn more returns. It’s magic over time.
Invest Rs. 1,000/month from 18–28, and stop. Someone who starts at 28 and keeps going will likely have less at retirement. Why? Time beats amount.
Taxes Don’t Have to Be Scary
PAN, Form 16, and Tax Basics
PAN Card: Your money ID. Get it early.
Form 16: Your employer gives it—it’s a summary of what you earned and what tax they cut.
Income Tax: If you earn above the exemption limit (Rs. 2.5–3 lakh/year), you file returns.
Filing Your First ITR
Go to the income tax portal, use a CA, or use an app like ClearTax. It’s not rocket science. And yes, even students should know this—especially if you freelance, tutor, or have side income.
Debt: Know the Difference Between Smart and Stupid
Student Loans, Credit Cards, BNPL
Student Loans: Can be useful—but only borrow what’s needed.
Credit Cards: Great tool if used well. Worst trap if abused.
BNPL (Buy Now, Pay Later): A slippery slope. Easy to get. Hard to repay.
Avoiding the Debt Spiral
Don’t buy what you can’t afford to repay
Always pay your card balance in full
Never borrow to impress people or post stories
If you’re borrowing to survive—not to splurge—that’s a red flag worth addressing
Tools That Make Life Easier
Top Indian Money Apps (2025)
Groww, Zerodha, Kuvera for investing
MoneyView, Walnut for budgeting
ET Money for both
Start slow. Explore them. Pick what clicks.
Online Safety Tips
Don’t use public Wi-Fi for money stuff
Enable 2-step verification
Don’t fall for fake calls, QR code scams, or phishing emails
One mistake can empty your account in minutes. Stay alert.
Real-Life Money Choices
Managing College or First Salary
Don’t spend like a lottery winner. Set a budget from Day 1.
Automate your savings—so you save before you spend
Learn to say no when needed—your bank balance matters more than peer pressure
Learning From Mistakes
Everyone messes up—overspends, ignores bills, forgets EMIs. That’s normal. What matters is what you do after. Do you ignore it or fix it? Grow from every mistake, and you’ll never be broke for long.
The Finish Line is Just the Starting Point
Financial independence doesn’t come from earning crores. It comes from knowing where every rupee goes, preparing for life’s curveballs, and taking control of your future early.
You don’t need to be perfect—you just need to be intentional. Start today. Even with Rs. 100. That’s all it takes.
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