Would you believe...?
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7 is the average age when children begin receiving pocket money
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51% of teenagers said they would like to learn how to control their spending
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54% of teenagers are interested in learning about saving
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66% of Britons believe finance lessons would have helped them deal with today’s financial challenges
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Over 50% of England’s teenagers have been in debt by the time they are 17
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10 years old is the average age when children begin to purchase items online
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8 years old is the average age for UK children to get their first mobile phone
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93% of teachers and parents think that personal finance should be taught in schools
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90% of teenagers say that they worry about money on a daily basis
We don’t think it’s unreasonable to say that most people would be happy to see personal finance being taught in schools. I’ve wondered if the bottom-line is, ironically... money. Perhaps schools don’t have enough money in their budget to teach it?
The value of money
A recent survey conducted by the Clydesdale and Yorkshire Banks found that UK parents consider teaching the nation’s youngsters the value of money as one of the most important lessons a child can learn.
Some 48 per cent of those questioned said that their child learning the value of money is an imperative learning point in their development, behind having good manners (74 per cent) and having sound morals (75 per cent).
Teaching their kids money matters from home was an intention set out many of the parents but the research also found that these days nine times more children learn about money in primary school than their parents did.
Clydesdale Bank’s director of retail, Steve Reid, said he hoped that over time financial education would become more accessible in class rooms, but for now it was encouraging that parent’s are taking steps to teach their children about monetary matters.
Money management for children as young as 5?
On 2 November 2011 the government launched the first ever ISA plan for children. The scheme effectively replaces the child Trust Fund and enables youngsters and their families to save up to £3,600 tax-free each year, wish cannot be cashed until the child reaches 18 years of age.
Children as young as five could be taught about personal finance at school under plans put forward by MPs.
They call for children to receive compulsory financial education lessons, including credit card interest rates and mobile phone contracts.
Leaving school with debt!
The group of 226 MPS and peers from the all—party parliamentary group on financial education for young people warn that unless the lessons are brought in, British youngsters face being plunged into debt within months of leaving school.
Tory MP Andrew Percy, the author of the report, said: ‘credit cards, mortgages, hire purchase agreements, mobile phone contracts, tuition fees and even supermarket offers all require us to apply functional maths skills, such as being able to calculate APR, compound interest and percentages, to real-life situations.
‘But too many of our school leavers, who can perform complex mathematical equations and algebra, have no idea what basic financial terms like APR and PPI mean - leaving them without the necessary level of financial literacy to make decisions in an increasingly complex financial world.
Reduce irresponsible borrowing at a young age
He added that financial education would be a long-term solution to irresponsible borrowing and personal insolvency. ‘Furthermore, teaching people about budgeting and personal finance will help equip the workforce with the necessary skills to succeed in business and drive forward economic growth,’.
Companies such as the PFEG (Personal Finance Education Group) are making inroads into bringing personal finance to the forefront of education in the UK. This is, indeed, encouraging. http://www.pfeg.org/