Mini banks in schools can turn financial literacy into practical life skills for students
Earlier this week, Cooperation Minister Subhash Shirodkar announced plans to establish mini co-operative banks in 100 schools and colleges to give students early exposure to the co-operative movement. This is a progressive and forward-looking move.
It will encourage young people to make small savings, fostering early habits of thrift. Initiating students into small-scale co-operative banking will give them an idea, at an early age, of how a co-operative body functions. They will also be encouraged to be part of a co-operative body. Depending on what each school or college would like to teach, students, especially at the high school level, will get lessons in financial literacy. For college students, irrespective of the stream, this exercise will surely help them manage or participate in a co-operative society and, more importantly, learn how to manage their finances. Experts could teach them not only how to save money but also about investments. Mini co-operative banks in educational institutions will give them hands-on experience – something they will remember forever.
If planned well, the government can take up a few educational institutions on a pilot basis (though the proposed 100 institutions are a good number) and use that experience to draw up a plan for the other schools and colleges. Inviting experts as guest lecturers from the co-operative sector once a month or so would help guide students and teachers. Through mentorship workshops, students could be introduced to various aspects of the co-operative sector. However, teachers should not be overburdened. Parent-Teacher Associations must also be consulted.
All of this may not be as easy as it appears. At the school level, students are minors and will face age-related limitations. For this, the authorities may have to involve parents, guardians or perhaps teachers to open accounts for mini co-operative banks or co-operative societies. The legal aspects will have to be studied thoroughly before the authorities can move ahead. Gen Z and Gen Alpha are unlikely to prefer physical passbooks; they would be far more comfortable with a mobile app instead. Especially at the college level, students could be introduced to the idea of business. It is said that Goan youth, in general, do not prefer to enter business. Given this mindset, students would gain a fair idea of running a business and standing on their own feet. Once informed about the various schemes available from government agencies and banking institutions, students could be encouraged to explore the idea of becoming entrepreneurs.
Going beyond campus activities, students will learn that the co-operative movement remains a key driver of the state’s economy. Goa has over 5,000 co-operative societies. No doubt, the movement has slowed over the years, but there are possibilities for exploring new areas. These include EV infrastructure, women’s welfare, fisheries, agriculture and handicrafts. Co-operation is one sector that plays a crucial role in rural development, empowering local communities and reducing socio-economic disparities. Co-operatives have played a crucial role in weaving the fabric of inclusive growth. The Department of Cooperation has many ideas to promote the co-operative movement, especially among the youth.
The co-operative sector in Goa needs to be strengthened. In the face of unemployment, it has an important role to play. To revitalise the movement, Goa must shift its focus beyond just credit societies and professionalise its approach. Once the legal aspects are settled, the government can give a push to the formation of campus co-operatives.
