What will Class 9 students learn about investments, taxes and entrepreneurship in new NCERT textbook?

The newly introduced NCERT Social Science textbook for Grade 9, Part 2, brings personal finance and entrepreneurship into the Economics curriculum, familiarizing students with financial management, savings, investments, taxation and the fundamentals of setting up a business.

The two chapters aim to provide students with practical financial knowledge and introduce them to essential skills required to make informed money-related decisions and understand how businesses operate.

Sharing details of the new additions, Sanjeev Sanyal, a member of Prime Minister Narendra Modi's Economic Advisory Council, said students will study concepts such as fixed deposits, mutual funds, equated monthly instalments (EMIs), taxes, risk and returns.

The textbook also features a dedicated chapter on entrepreneurship, covering subjects such as profit and loss accounts and business plans. It presents risk-taking, innovation and business activities in a positive manner.

In a post discussing the changes, Sanyal said the approach differs from that of the previous textbook, which, according to him, emphasized concepts such as hoarding and black markets.

What Will Students Learn?

The personal finance chapter focuses on helping students understand how money is managed and why financial planning is important at different stages of life. It introduces the meaning of personal finance, its importance, key financial principles, savings and investment options, protection of savings and assets, and income tax.

Rather than beginning with financial terminology alone, the chapter encourages students to connect the subject with their everyday experiences of handling money.

It opens by asking students to think about the money they receive as pocket money or from relatives during festivals and consider how they generally use it.

Students are encouraged to reflect on questions such as:

• Do you spend your money immediately or save some of it?
• Do you keep your savings in a piggy bank (gullak) or somewhere else?
• How do you manage expenses such as travelling to school, buying stationery or purchasing food from the school canteen?
• Have you ever planned your spending to save money for something you wanted to do later, such as visiting your grandparents during the summer break?

The chapter explains that financial management starts during childhood, when individuals begin making small decisions about spending and saving. These habits become increasingly important as they grow older, start earning and take responsibility for their finances.

As adults, individuals use their income to meet their needs and wants while also saving and investing to achieve long-term financial objectives. These goals may include purchasing a house or arranging funds for higher education.

It further highlights that individuals and households make several financial decisions throughout their lives. Since money is an important resource, it needs to be managed and utilized efficiently.

The textbook defines personal finance as the planning and management of an individual's money to meet their needs and wants. It involves making informed choices about spending, saving and investing to manage financial requirements.

Savings, Investments And Risk-Return: Key Concepts In NCERT Class 9 Economics

Students will also be introduced to different savings and investment instruments and the relationship between the risks associated with investments and their potential returns.

The chapter explains that investment options involving lower risks generally provide lower returns, while those carrying higher risks may offer higher returns. This distinction helps students understand that the potential gains from an investment are often linked to the level of risk involved.

It also emphasizes that investment decisions should not be made without considering individual financial circumstances. Students will learn that the choice of an investment depends on a person's financial goals, willingness to take risks and the period after which the invested money may be required.

These concepts are intended to familiarize students with the factors that influence financial decisions and the importance of selecting savings and investment options carefully.

NCERT Class 9 Personal Finance Chapter: What Will Students Learn About Taxes?

The personal finance chapter also introduces taxation and explains how taxes contribute to the functioning of the government and the provision of public services.

Taxes are described as compulsory payments made by individuals and businesses to the government. The revenue collected is used to provide essential public facilities and services, including schools, hospitals, transportation and defense.

Students will learn about different categories of taxes and how they are collected.

The chapter covers the following types of taxes:

1. Direct taxes: These taxes are paid directly by individuals or organizations on their income or profits. Income tax is an example of a direct tax.

2. Indirect taxes: These taxes are included in the prices of goods and services purchased by consumers. The Goods and Services Tax (GST) is an example.

3. Personal income tax: This refers to the tax paid on the income earned by an individual during a financial year. In India, the financial year begins on April 1 and ends on March 31. Individuals whose income falls below the prescribed exemption limit are not required to pay income tax.

Along with explaining the different forms of taxation, the chapter highlights why understanding personal finance is necessary for individuals and households. It introduces students to the importance of managing income, controlling expenses, building savings and making appropriate financial decisions.

NCERT Class 9 Entrepreneurship Chapter: From Ideas To Startups

The second chapter, titled 'From Ideas to Startups,' introduces students to entrepreneurship and examines its contribution to society and the economy.

It familiarizes students with the basic functioning of businesses and encourages them to understand how an idea can be developed into a business venture.

The chapter addresses several questions related to entrepreneurship, including how businesses influence society and the economy, what the functional areas of a business are, and how an entrepreneur can prepare a business plan.

To explain these concepts through a practical example, the chapter begins with a classroom activity based on a hypothetical school festival.

Students are asked to imagine that their school is organizing its annual festival and they are participating in a 'Young Entrepreneurs Challenge.' As part of the activity, they must develop a product or service for parents and children visiting their stall.

For the exercise, students decide to establish a lemonade (nimbu pani) stall. They are expected to manage the activity and, at the end of the day, prepare a report detailing the expenses incurred and the profit earned.

The report must then be submitted to their class teacher, giving students an opportunity to understand the financial aspects of running even a small business.

Through this exercise, students are introduced to several fundamental elements of entrepreneurship. These include market, activities, strategy, analysis, goals, innovation, artificial intelligence (AI), opportunities, teamwork and performance.

The chapter also explains the meaning of profit, describing it as the money earned from a trade or business after deducting the costs involved in producing and selling goods and services.

The lemonade stall serves as an example to help students calculate whether their business activity has generated a profit or resulted in a loss.

Explaining the broader concept, the textbook states that the activity captures the essence of running a business through planning, organizing and learning by doing.

It defines entrepreneurship as a process through which an individual or a group of individuals converts a potential idea into a business venture.

What Are The Four Functional Areas Of A Business In NCERT Class 9?

The entrepreneurship chapter further introduces students to the four major functional areas of a business and explains the responsibilities associated with each of them.

These areas cover the management of daily operations, financial resources, employees, marketing activities and sales. The textbook explains how each function contributes to the overall performance, growth and success of a business.

The four functional areas are:

1. Management and Operations

This function involves overseeing everyday business activities, coordinating different processes and ensuring that operations run efficiently.

Its responsibilities include production, quality control and supply chain management. These activities help businesses manage the production and delivery of their products and services.

2. Finance and Accounting

Finance and accounting focus on managing a business's money, maintaining its financial health and ensuring that available resources are used effectively.

The activities under this function include budgeting, financial reporting and cash flow management. These processes help businesses monitor their financial position and manage income and expenditure.

3. Human Resources

The human resources function deals with managing employees and ensuring that a business has people with the appropriate skills and capabilities to perform different tasks.

Its responsibilities include hiring employees, managing employee benefits and resolving workplace conflicts. It also focuses on managing the workforce required for business operations.

4. Marketing and Sales

Marketing and sales involve building customer awareness, promoting products and services and generating sales to support business growth.

The activities covered under this function include advertising, promotional campaigns and sales. These efforts help businesses reach customers and communicate the value of their products and services.

Students interested in reading the newly introduced Economics chapters and exploring the other sections of the Grade 9 Social Science textbook can access the NCERT publication through its official website.