Copy of Financial Education Workbook-VIII

Introduction

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• Financial Education Workbook for Class VIII published by the National Centre for Financial Education in 2019.

• Aims to improve understanding of basic financial concepts and promote financial well-being.

• Rights of reproduction are reserved.

Financial Education and Its Importance

• Financial education is crucial for:

  • Understanding basic financial concepts.

  • Making informed financial choices to improve financial well-being.

  • Awareness of financial products and risks.

• Vision: To empower students to understand the role of money in life, savings, and investment.

Acknowledgements

• Special thanks to stakeholders including:

  • Reserve Bank of India (RBI)

  • Securities and Exchange Board of India (SEBI)

  • Insurance Regulatory and Development Authority of India (IRDAI)

  • Central Board of Secondary Education (CBSE)

Index of Subjects

• HISTORY: Introduction to Insurance, Types of Insurance

• CIVICS: Types of Banks, Cheque, Tax

• GEOGRAPHY: Money in & Money out, Demand Draft

• ENGLISH: How to Open a Bank Account, Insurance: A Story

• MATHEMATICS: Filling of Deposit and Withdrawal Slips, Operating your account

Overview of Key Insurance Topics in Class VIII

Introduction to Insurance

• Definition: Contract between insurer and policyholder for future compensation against specific events.

• Types of Insurance:

  • Life Insurance: Protection against financial loss from death.

  • Health Insurance: Covers medical expenses.

  • Travel Insurance: Covers losses during travel.

  • Home Insurance: Protects home and belongings.

  • Motor Insurance: Covers vehicle-related damages.

Historical Context of Insurance in India

• Insurance traces back to ancient texts; modern practices began in 1818 with the Oriental Life Insurance Company.

• Nationalization of insurance in 1956 ensured public control over the sector.

  • The Life Insurance Corporation (LIC) was created.

  • The general insurance sector underwent reforms post-2000.

Banking Essentials

Definitions and Types

• Bank: Institution that accepts deposits and provides loans.

• Account Types:

  • Savings Account (SB): For personal savings.

  • Current Account (CA): Business transactions.

  • Recurring Deposit Account (RD): Regular savings.

  • Fixed Deposit (FD): Fixed term deposits with higher interest.

Cheques and Payment Instruments

• Cheque: A document instructing a bank to pay a specified amount.

  • Types: Bearer Cheque, Order Cheque, Crossed Cheque, Post-Dated Cheque, Ante-Dated Cheque, Stale Cheque.

• Demand Draft (DD): A prepaid instrument guaranteeing payment.

Taxation Basics

• Income Tax: Levied on individuals based on income levels.

• Property Tax: Tax on property value imposed by local authorities.

• Goods and Services Tax (GST): A unified indirect tax structure for the entire nation.

Practical Exercises and Activities

• Engage students through activities:

  • Visit banks to observe operations.

  • Simulated exercises on opening accounts, filling forms, and using financial instruments.

Future Learning Goals

• Promote financial literacy and practical financial skills among students to foster responsible citizenship.

• Encourage understanding of banking operations and financial management throughout daily life.

Conclusion

• Financial education is essential for building informed citizens capable of making sound financial decisions, hence contributing to the economic empowerment of the nation.