Cultivating early financial literacy: The role of teaching risk and insurance to students in public higher learning institutions

Abstract

Socio-economic vulnerabilities and modern financial risks require immediate capabilities from younger generations, necessitating structured interventions in educational sectors. This article explores how teaching Risk and Insurance frameworks fosters early financial literacy awareness among undergraduate students within public higher learning environments. While personal wealth accumulation strategies often dominate mainstream literature, structured protection and risk-mitigation competencies are frequently overlooked. Utilizing an action research framework, this study examines classroom interventions aimed at developing cognitive awareness of premium calculations, policy terms, and personal risk diversification schemes. The findings reveal that dedicated teaching structures significantly improve students' proactive financial protection attitudes, clear misconceptions regarding Takaful and insurance policies, and promote early risk management behavior. The paper discusses academic frameworks to help public higher learning centers design robust social safety education formats.