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7 Steps to Teach Financial Responsibility

As accounting teacher, it should also your informal duty to teach financial responsibility to your students with formal teaching of accounting and finance subjects. Your students should aware with their financial duties and responsibilities. Students should know the inflow of cash and how to save it and how to use it. They should also know what will happen on him and on nation if they will not fufill their financial responsibilities.

I made following steps for teaching financial responsibility

1st Step : Teach Vicious Circle of Poverty Correctly

Finance and economics are related concepts. Vicious Circle of Poverty, you will read in economics. But past explanation is totally wrong. In past, it was told that a poor will become more poor because he has no resources. He will invest his low resources and again he will become more poor and he will live always in poverty.

Now, it should be explain in following way

In India, no person is poor. But  it is big consiperacy of developed countries to show Indian poor through its changes in Indian economics education. They have brought  the concept of vicious circle of poverty of India. In our sense, vicious circle means how to make Indian poor through

 Convertibility of Rupee : Actually, with this our currency is devalued in world market. Our natural resources are more and costly than other countries natural resources. But after devaluation of our currency, we get less amount if we trade products in world market. So, we capture in poverty.

Now it is our financial responsibility to say "Be Indian and Buy Indian" and use it practically for coming out of vicious circle of poverty. With this, we have to love our Indian producers' products and must prefer it than buying foreign countries products.

You can also use this for your country also as " Support Your Country and Buy Your Country's producer's products". Few years ago, Brazil's teaching department did this compulsory by acting this in formal education system. Now there is also " be Brazilian and buy Brazilian."

2nd Step : Teach Budget

Budget is financial estimation of earning and expenditure. In personal finance, if student will learn it they can avoid useless expenses and enhance their part time earning. They can also utilized this fund for future development.

3rd Step : Teach Present Value of Money

Present value of money is today money's value which is more important what will we receive after 1 year. It is totally related to your financial responsibility. Before buying anything, try to compare its present profit with present investment. Always future profit will less than present profit.

4th Step : Teach Dangers of Buying from Foreign Country

When we buy anything from foreign country, our money goes to other country. Suppose, we buy one cold drink  from USA. Suppose its cost is Rs. 2 and its price is Rs. 12. Our Rs. 10 will go to USA. It is used by USA for developing USA. Now, if you buy same cold drink from India. Same manufacture will get Rs. 10 and deposit it in Indian bank and this fund is used for loans to unemployed Indians at very low rate of interest. Thus, we will indirectly support to develop India. Not all but all zero technology products must not be bought from foreign countries.

5th Step : Teach Basics of Finance

In basics of finance, we can include, money, cash, fund, saving, earning and banks. Before teaching financial responsibility, you should watch this at here.

6th Step : Teach the features of Money

There are lots of features. For fulfilling financial responsibility, you should know all the futures of money. You can read at here.

7th Step: Teach Financial Self- Independence

As a teacher, you should teach to your students that it is better to do small work under control than taking big loan through credit card or others.

(a)  If you will not able to repay your debt. You will feel tension. With this tension, you will face dangerous diseases.





(b)  With this dangerous disease, your family will feel sadness and take loan for your treatment.
(c) For giving loan to your parent, govt. of India will take loan.

(d)  If Govt. of India will not repay loan. Creditor of Foreign country will sell India in world market. When India will sell in world market. All Indian's financial independence will be controlled by creditors of foreign countries. After this, we will treat as slave.

So, it is my personal request, you must understand this carefully. Ok

Related : How to Teach Financial Literacy

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Accounting Education: 7 Steps to Teach Financial Responsibility
7 Steps to Teach Financial Responsibility
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Accounting Education
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