Why we need more financial education…

Picture this: five-year-olds in primary school singing nursery rhymes, being read stories and learning about pensions and retirement. The latter may seem a bizarre notion. Why? Stories help children understand the world. Financial education helps them to navigate the world when they’re older.

We tell children to eat their vegetables to grow up big and strong. Well, tell them to brush their teeth. We teach them to read and write. There’s a multitude of habits and skills that are handed down to our young to enable them to become healthy, capable adults.

Why not money management too? It’s the fiscal version of ‘eating your greens’ – helping us to grow up financially strong; make good decisions about saving, spending, and pensions, resulting in understanding how what we do today can affect the future.

In the same way, good brushing habits can reduce the risk of tooth decay, good financial habits can reduce the risk of stress, anxiety and mental illness caused by debt, money worries and lack of financial control.

A 2018 survey conducted by TISA (The Investing and Savings Alliance) revealed that only one-third of children are taught about managing money in schools. In 2019, the London Institute of Banking and Finance’s Young Persons’ Money Index revealed that 69% of students worry about money, and 82% want to learn more about money at school.

TISA’s Chief Operations Officer, Carol Knight, believes financial education works. “Of the 14-16-year olds who are receiving lessons on managing money, over two-thirds said the lessons had changed the way they spent and saved their money,” she said. “On top of this, eight in 10 said they felt more confident in managing their money.”

With today’s youngsters crying out for more financial education, if you’re a working adult, the chances are it wasn’t on your timetable when you were in school. So if you’d like to be a savvier saver, or more prudent with your pension – contact us at Crystal for a free, no-obligation consultation. See how we can help you organise your finances for a better, sweeter future. To speak to a specialist call us on 01270 446600.

https://www.libf.ac.uk/study/financial-capability/young-persons-money-index

https://www.moneywise.co.uk/opinion/financial-education-why-it-matters-start-young

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