The education system is supposed to be teaching young people about the Game Of Life, yet we are not even teaching them the rules of the game before they play. Since I was elected in July, I have had conversations with parents, bankers, teachers and students and they have all been clear that there is a belief that we are not teaching the next generation the importance of money. Management. In fact, only 1 per cent of teachers believe that their pupils hold adequate financial skills.
Although there is a lack of financial education provision, I am certainly not claiming that previous parliaments have not recognised the importance of financial education. However, all attempts have been half-baked and have not made long-lasting difference.
For instance, the coalition government in 2014 introduced legislation to make financial education a part of the National Curriculum. Yet, the introduction of Free-Schools and Academies meant that many students have been taken out of the National Curriculum remit. Whether you agree with curriculum independence for the aforementioned schools or not, it is regretful that they are not providing their students these vital financial life skills.
This is at a time when young people need this education, the most.
We are living in a world of technological advancement which has opened up access to financial decisions for young people. With the development of digital spending, 64 per cent of teenagers are regularly able to purchase items, without parental supervision, at the click of a button. Yet, most concerningly, options such as ‘Buy now, Pay later’ schemes have enabled teenagers to make credit purchases on high value items without acknowledging the means of paying for it.
With fraudsters, also, now actively targeting 50 per cent of young people aged between 15-18. It is shocking that we as a country do not take financial education more seriously. In fact, these countless years of oversight have led to 1 in 2 adults not being able to pass a financial literacy test run by the OECD. In these standings, we are well below comparable Western nations — and directly above Thailand and Albania.
How on earth can this be the case for the 5th richest country in the world?
Coming from a single-parent family in a more deprived area of the United Kingdom, I know the challenges that many face due to global economic shocks that are out of their control. I was lucky, I had grandparents that taught me about the importance of financial management. However, there are many that do not have this luxury. The increasing body of evidence shows that disparities in the levels of financial literacy between children from different socio-economic background is something that must be addressed.
This is why I, alongside cross-party supporters, launched my #FinEd campaign.
Last Tuesday, I introduced Financial Education 10 Minute Rule Bill to the House. In essence my Bill looks to achieve three goals.
Firstly, the Bill would mandate financial education throughout the Primary School curriculum. I am not suggesting that teachers will have to teach 4-year-olds about mortgages and compound interest but, instead, the simpler aspects of budgeting and saving. This is essential as there have been numerous studies explaining how money habits are being formed in our next generation much earlier than had been presumed.
Secondly, the Bill would consolidate financial education throughout the Secondary School curriculum. We simply must increase the number of Secondary students who are being taught financial education but we must also give teachers the confidence to do so. I recently spoke to Santander and they outlined how they offer free resources to teachers for money management lessons and they also advocated a cross-school approach. The cross-school approach would encourage aspects of financial education in a number of subjects such as History, Geography and IT.
Thirdly, the Bill would extend financial education provision to post-16 educational settings. As students enter a time of their life where they start earning and have more financial freedom, we are currently dropping any education on their finances. It is therefore no wonder that MyBnk found that 96 per cent of young people worry about money daily and that 55 per cent of apprentice employers have witnessed young employees in financial difficulty.
Whilst my Bill is unlikely to be passed into law due to the complexities of parliamentary procedure; I would strongly urge the government to support this cross-party campaign. We need to stop simply standing by and allowing the next generation to walk into financial ruin.
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Source: Politics
