Education lays the foundation of personality and it is necessary for all-round development of learners. Education is important for character building and moral development also. Life skills play an important role in preparing the foundation of a good character for a well developed personality. Delors report ‘learning the treasure within’ emphasize on education to be able for Learning to know, Learning to do, Learning to be and Learning to live together with others, so that it can result into a happy life (Delors, 1998).Well developed personalities and socially adjusted person are able to lead a happy life. World Health Organization specified ten core life skills which are the basis of the formation of a good personality by developing certain characters into the students. Rousseau stated that a proper education during childhood is the basis of happiness in future. Life skills are those skills which make children able to deal with everyday situations for leading a happy life. This paper is concerned with the necessary life skills, their effect on children’s development and the way of implementation of life skills education during schooling.