FINANCE
A good financial education should start when you’re young. So how do you support your kids’ learning? Caroline Bloor investigates
Many parents may think it strange that when an understanding of money is so intrinsic to adult life – from spending on bills to saving and borrowing to afford the things we want – financial education isn’t an integral part of our children’s education in all schools. According to a recent Money and Pension Service (MaPS) survey, only 47% of children say they recall receiving a meaningful financial education at school, and this number hasn’t changed in the last three years.
There is increasing evidence of the need for better financial education to help children and young people learn the skills they need to make the most of their money, set financial goals and avoid getting into debt or getting scammed. Nearly 70% of UK adults say better financial education would have increased their ability to manage their finances as the cost of living rises, according to research by Santander.
Why financial education matters
Research shows that children and young people who report having had some financial education at school are more likely to save money regularly, have a bank account and be confident managing their money, according to MaPS’ research. ‘Our experiences in childhood prepare us for adulthood, and learning about money is no different,’ says Sophia Spence-Cheng, head of policy team at the Office of the Public Guardian and former policy manager in the children and young people’s team at MaPS. By 2030, MaPS’ goal is to have 2m more children and young people in the UK receiving a meaningful financial education.
Sharon Davies, CEO of Young Enter prise, says, ‘Financial education equips young individuals with money management, budgeting and decision-making skills, empowering them to make more informed choices and plans relating to their financial futures. It promotes financial capability through providing tools, resources and guidance to cultivate sound decision-making, savings habits and effective planning.
‘Confidence in handling money, particularly in our digital age, when children are less likely to use physical coins and notes, is a key skill that can be taught, and will help young people navigate more complex financial transactions in adulthood.’
Every nation in the UK has its own curriculum incor porating financial education differently. It’s on the primary and secondary curriculum in Wales, Scotland and Northern Ireland, but only the secondary curriculum in England.
‘Even where it’s on the curriculum, it’s not being delivered consistently,’ says Sarah Marks, CEO of RedSTART Educate, a financial education initiative. ‘If we, as a society, are going to take this seriously and think it’s an important part of a child’s education,
