Course Content
How does money work?
To start understanding money, we need to understand how money works. There are concepts like Pay Yourself First, Magic of Compounding, Time Value of Money and Cost Averaging that would help you understand money.
Recommended Reading
List of blogs and books for reading
The Cost of Free Advice
Case studieson the cost of advice.
The Psychology of Money
Read how your mind works when it comes to matters about money
Financial Literacy for School Students
About Lesson

Activities to Understand Money Concepts:

Time Value of Money:

  • Future Value Race: Divide students into teams and give each team a hypothetical Rs10000 investment. Teams roll dice or draw cards to simulate investment periods (1 year, 5 years, etc.) and calculate future values with different interest rates. The team with the highest future value wins.
  • Discounting Game: Students act as investors considering two projects with different upfront costs and future returns. They calculate the present value of each project using discount rates to choose the more valuable option.
  • Inflation Challenge: Present scenarios where students must consider inflation’s impact on future purchases. For example, calculate how much a desired gadget will cost in 5 years with a specific inflation rate.


  • Snowball Effect: Students start with a small amount of money and track its growth over time with compounding interest. They can use online calculators or create simple spreadsheets to visualize the exponential effect.
  • Magic Penny Challenge: Offer students a “magic penny” that doubles in value daily. They track its growth for a week and compare it to linear growth methods (saving a fixed amount daily).
  • Investment Simulation: Students choose different investment strategies with varying compounding frequencies and compare their long-term returns. This can be done with online simulations or simple calculations.

Pay Yourself First:

  • Budgeting Simulation: Give students a hypothetical income and various expense categories. They allocate funds for essentials, discretionary spending, and “pay yourself first” savings before considering the remaining categories.
  • Automatic Savings Challenge: Students research automatic savings apps or features and set up recurring transfers from their “income” (allowance, part-time earnings) to a dedicated savings account.
  • Reward Yourself System: Implement a system where students “pay themselves first” and then earn rewards from their accumulated savings for achieving specific goals (e.g., completing chores, good grades).

Cost Averaging:

  • Stock Market Game: Simulate investing in a volatile stock market using play money. Students practice cost averaging by buying small amounts at regular intervals, regardless of the stock price, and compare their results to lump sum investments.
  • Rupee-Cost Averaging Challenge: Students research historical data for real stocks and calculate the total return using cost averaging versus single investments at different points in time.
  • Investment Club Project: Have students form groups and research real companies. Each group uses cost averaging principles to invest in their chosen company (virtually) and track their performance over a designated period.


  • Tailor activities to the age and understanding level of your students.
  • Use real-world examples and scenarios to make the concepts relatable.
  • Encourage active participation and discussions to solidify understanding.
  • Make it fun and engaging to keep students motivated and interested.

By incorporating these activities, you can grasp these financial concepts in an interactive and meaningful way, setting them on the path to making informed financial decisions in the future.

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