Financial Literacy: Money, Income, and Basic Transactions
Description
This foundational subject establishes essential knowledge about money, its forms, functions, and role in everyday financial life. It covers different sources of personal income ranging from employment to passive income streams, introduces various payment methods used in modern Indian economy, and teaches core concepts of budgeting, cash flow management, and opportunity cost. This subject also addresses the psychological and behavioral aspects of money management, helping learners understand their own financial patterns and decision-making tendencies. Understanding these fundamentals is critical before progressing to more complex financial topics.
Learning Objectives
Upon successful completion of this subject, learners will be able to: (1) explain what money is, its various forms (fiat money, commodity money, digital money), and its three main functions as a medium of exchange, store of value, and unit of account, (2) identify different sources of personal income including salary, wages, business income, dividend income, rental income, and other passive income streams, (3) understand how different payment methods work including cash, checks, digital transfers, UPI, and cards, and their relative advantages and disadvantages, (4) create a basic household budget that tracks income and expenditure, (5) read and interpret a paycheck, understanding gross salary, net salary, deductions for PF, gratuity, allowances, and tax implications through TDS, (6) analyze the impact of inflation on purchasing power and real value of money over time, (7) organize and maintain personal financial documents including bank statements, receipts, and important records, (8) apply opportunity cost concept to financial decisions, understanding trade-offs in spending choices, (9) recognize personal financial behavior patterns and consumption habits, understanding how individual spending psychology affects financial outcomes.