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Lesson 1: Assets and Liabilities

ASSETS vs LIABILITIES

Every money choice you make is either pulling you up or down. The first step to financial independence is knowing the difference between assets and liabilities. This single concept will change the way you see finance and will help you in the way you make financial choices

Assets

Things that put money in your pocket. E.g., a business or an investment

Liabilities

Things that take money out of you pocket. E.g., a loan, credit card debt, subscriptions

Assets increase value and generated income

Liabilities decrease value year after year. E.g., a car depreciates value every year

They help build your savings in the future. E.g., a skill that helps you earn money.

They reduce your saving options and investments.

Examples of Assets

Examples of liabilities

Ready?

Now that you know the difference between assets and liabilities, it is time to find out how to acquire an asset

How to acquire Assets?
Part 1

Now that you have learnt the differences between assets and liabilities, it’s time to learn the art of acquiring assets. Assets mean wealth — acquiring them as a teenager gives a head start in your financial life.

Before acquiring assets, here are a few questions you need to ask yourself

If the answers to these questions are all positive, you can start acquiring assets immediately as they take time to grow but definitely help you build your wealth. While acquiring assets is not something that could happen in a few months, if you obtain the correct ones, you’ll generate a lot of wealth over time.

Ready?

💵 Now learn the ways to acquire assets!

📈 Stocks

1. STOCKS 💎

It is like an online marketplace where instead of clothes or electronics, you are trading small parts of companies

1.1 EXAMPLE OF A STOCK 📈

NSE 100 or 50 📊📉

The NSE 50 and NSE 100 are all the top companies in India that are performing well so investing in them will grow your money.

Advantages of investing in NSE 100 or 50

  • Investing in all of the top companies together
  • Buying at least 1 stock from each company

No, you don’t need a lot of money for this. Even 100 or 500 Rupees is enough to be able to invest in NSE.

1.2 RULES TO FOLLOW WHEN INVESTING IN STOCKS 💰

  • Learn the basics – stocks, risks, ETFs
  • Start small, grow slowly
  • Use trusted apps (Zerodha, Groww, ICICI Direct)
  • Don’t panic – markets rise and fall
  • Never borrow to invest
  • Needs first, investments later

Mutual Funds

Mutual Funds 🌱

What are Mutual Funds?

Mutual Funds is like teamwork where many people put in money together to buy a stock or company and benefit from it if it does well. It is a great head-start towards asset building.

Why it is useful:

  1. Your investments become diversified: Diversification is very important in finance. The more companies you invest in, the more you reap the benefits.
  2. You don’t have to waste time trying to find the perfect stock.
  3. You can invest small amounts regularly.

Steps to investing in mutual funds:

  • Learn the basics – Understand how mutual funds work
  • Get parental help – Have a guardian assist with account setup
  • Complete KYC – Verify identity with Aadhaar card
  • Choose a platform – Use trusted apps (see CashClimb guide)
  • Pick your fund – Start with Index Funds or Nifty 50/100
  • Start small – Begin with ₹100+ via SIP
  • Monitor quarterly – Check every 3–6 months, stay calm
  • Keep learning – Build confidence for future decisions

💰 Savings Account

💰 Savings Account

What is a savings account?

  • Ideal for short-term goals like an emergency fund or education
  • Can open it physically or online
  • Used to save money and earn interest from the bank

💸 Saving Account Interest Rates

  • Banks reward you with interest + money you saved
  • It’s a reward for saving, helping your money grow over time
  • The higher the rate the faster your savings grow

🏦 Key Features of a student savings account

  • No/Low minimum balance
  • Easy Access
  • Special Perks/Fee waivers
  • Financial Discipline
  • Transition into a Regular Savings Account

📈 Benefits to having a high-yield savings account

  • Higher interest rates (regular accounts provide 2–4%, HYSA provides 5–7%)
  • Easy access
  • Great for long-term goals

How to Avoid Liabilities?

💡 Budget/Track your expenses:

Use CashClimb’s budget tracker to manage expenses. Spend wisely, save diligently, and balance both smartly.

🧠 Avoid Financial Peer Pressure:

Don’t let friends influence your spending. Just because they buy something doesn’t mean you have to.

📘 Understand needs vs. wants:

Essentials like books and stationery come first. A new phone or canteen food are wants so avoid them to save money.

💼 Look for part-time work:

Babysit, tutor, or take up a paid internship to become financially conscious. If you’re short on time, find other simple ways to earn without overcommitting.