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.