The day he brought money to school, there was on leave the teacher who gathered the fee. Thus, on the day he brought the money, the child did not pay school fees.

He was told by the coins that the jalebis were supposed to be consumed, and ony could be consumed by those who had cash.

Yes, I believe he was misguided because his pocket cash was for college charges, not jalebis.

He dind not take the coins advice because:
(i) He thought he was a good boy..
(ii) He had enough to eat at home, so he believed eating at home was a sin.. 
(iii) He knew he couldn't pay the school fee if he spent the money on jalebis..