The National Council of Educational Research and Training (NCERT) has introduced new chapters on Personal Finance and Entrepreneurship in the Economics section of its Class 9 Social Science (Part 2) textbook.
The additions aim to familiarise students with basic financial concepts, money management and the fundamentals of starting and running a business.
Speaking about the new chapters, Sanjeev Sanyal, a member of Prime Minister Narendra Modi’s Economic Advisory Council, said students will learn about concepts such as fixed deposits, mutual funds, equated monthly instalments (EMIs), taxes, financial risks and returns. The objective is to equip students with practical financial knowledge and essential life skills.
The revised textbook also includes a chapter on entrepreneurship, introducing students to concepts such as profit and loss accounts and business plans. It discusses risk-taking, innovation and business activities from a positive perspective.
Sanyal said this approach differs from that of the earlier textbook, which, according to him, focused on concepts such as hoarding and black marketing.
The new chapter introduces students to personal finance, explaining why managing money and making informed financial decisions are important. It covers several essential topics, including:
– Meaning and importance of personal finance
– Key principles of personal financial management
– Common savings and investment options
– Ways to protect savings and financial assets
– Basics of income tax
The chapter begins with familiar examples from students’ everyday lives, encouraging them to think about how they manage money received as pocket money or gifts from relatives during holidays. It asks them to consider whether they usually spend or save such money.
Students To Learn About Taxes
The textbook explains taxes as compulsory payments made by individuals and businesses to the government. These payments help fund public services and essential facilities, including schools, hospitals, transportation and national defence.
Students will learn about the following types of taxes:
1. Direct Taxes: These are taxes paid directly by individuals or organisations on their income or profits. Income tax is a common example.
2. Indirect Taxes: These taxes are included in the prices of goods and services. The Goods and Services Tax (GST) is an example.
3. Personal Income Tax: This is the tax an individual pays on their earnings during a financial year, which runs from April 1 to March 31. Individuals whose income falls below the prescribed exemption limit are not required to pay income tax.
Through these lessons, NCERT aims to help students understand the importance of financial planning, taxation and responsible money management from an early age.
