For most of us, the mention of Teachers' Day brings up memories of chalk-dusted classrooms and our much-loved teachers who imparted critical life lessons, often in a stern but loving manner. But did you realise that your school teacher also gave you your first lesson in financial planning? Let's go down memory lane and see how those classroom teachings translate into real-world financial wisdom.
The discipline of saving
Your teachers always spoke about the need for discipline. And to practice it beyond the classroom. Discipline is the cornerstone when it comes to financial planning too. Think of it as a finance "homework" that you should submit regularly to your future self. As a student, if you stuck to your timetable and did your lessons on time, it is possible that you aced your exams.
Similarly, sticking to an investment plan can help you achieve financial stability. Your teacher taught you to break down big projects into smaller tasks; similarly, break down your financial goals into manageable savings milestones.
Budgeting
As a student, budgeting meant dividing up your time between various subjects. Haven’t your teachers told you to devote more time to subjects that you found tough? Now apply the same principle to your finances.
Draw up a monthly budget to divide your money between regular and necessary expenses, investments and unplanned expenses. This will help you ace your financial planning.
Similarly, when applying for a loan, always use the EMI calculator, a tool that helps you in budgeting as you can plan your repayments better.
The compound interest magic
Math class might not have been everyone's cup of tea, but it introduced us to the magic of compound interest. Just like how early preparation for exams yields better results, starting your savings journey early allows compound interest to work its magic.
Risk and reward
Your teachers encouraged you to take risks because they knew that's how you grow personally and academically. They perhaps did this by pushing you to participate in events and competitions, for which you won medals or awards. In the financial world, calculated risks can lead to significant rewards. For instance, investing in equity and equity-linked investment products, which are riskier as compared to fixed-income investments, is essential. Equity has the potential to offer inflation-beating returns, in the long-term.
The importance of a safety net
Your teacher's first-aid kit and emergency contact numbers were more than just items in a drawer; they were lessons in preparedness. In our lives, we need several such safety nets. For instance, before investing in equity arm yourself with thorough and detailed information about the various investment options. Only then you will be able to invest for your future with the proper risk-mitigation tools in place. And always have an emergency fund to deal with any unexpected expenses.
Lifelong learning
Your teacher instilled in you the love for lifelong learning, a trait that's invaluable in today's ever-changing financial landscape. Axis Bank's Education Loan is designed to adapt to your evolving educational needs, from undergraduate studies to specialised courses. With comprehensive features and benefits, you're not just borrowing money; you're investing in a lifetime of learning and growth.
Also Read: [Five financial lessons to learn from Lord Ganesha]
Conclusion
Your school teacher may not have explicitly taught you about SIPs, EMIs, or Mutual Funds. However, the foundational principles of discipline, budgeting, and risk-taking were all laid down in those hallowed halls. This Teachers' Day, as you pay tribute to your mentors, take a moment to thank them for these invaluable life lessons too.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
