Less than 50% of kids learn the skills to manage their money
Most students leave school or college without key financial skills, new research finds.
Hundreds of thousands of pupils are finishing school in the UK each year without the financial knowledge they need for adulthood. That’s according to the Money and Pensions Service (MaPS), based on its new poll of 1,012 teachers, carried out by YouGov.
The study also found that almost all teachers think children should be taught about money – and most think it should happen in primary school.
Why is financial education important?
The impact of leaving school without a meaningful financial education is stark. According to research by the kids’ debit card brand GoHenry, having no financial education makes people more likely to be unemployed or earning less than those who did get one.
It also can lead to poor financial resilience, where someone has little or no savings and could quickly find themselves in difficulty if they suffer a financial shock. And it can make people more vulnerable to fraud and scams.
Poor financial literacy has a very real impact not only on individuals, but also on businesses and the wider economy.”
What is the government doing about it?
The government recently held an inquiry into strengthening financial education in schools. It invited experts to give evidence on how financial education can play a more prominent role in schools.
Results from the inquiry have yet to be announced and a further session is due to take place in the coming months.
It’s clear that changes need to be made, after around a quarter of teaching staff surveyed by YouGov said they don’t have enough confidence or skills or weren’t sure where to find the right support and resources.
What can parents do about it?
Financial education in the UK is falling to parents: 2 in 3 young people say they get most of their financial understanding from their parents or family, according to research from the London Institute of Banking & Finance.
However, a Finder survey of 1,007 parents showed that less than half are confident they can teach their children about key money topics such as explaining APR or the base rate.
If you’re a parent looking for resources to better support your child’s financial education, take a look at Finder’s kids’ money hub. You’ll find a free downloadable PDF with a fun “Kids control the budget” challenge. There’s also a kids’ savings calculator to help your child save towards a goal, and useful information explaining the different financial products available to children.
About the author
Kate Steere is an editor at Finder.com, specialising in banking and fintech. She has previously written for The Motley Fool UK and Fitch Solutions, where she covered a wide range of personal finance topics and kept a close eye on market trends. Kate is regularly quoted in the national media about banking, fintech and mortgages.
This article originally appeared on finder.com/uk and was syndicated by MediaFeed.org.