Finance education for children

Posted by Sharon Yewen in Personal Finance on 13 September 2012 - Sharon is Financial Controller at checkmyfile.

A recent study commissioned by the charities National Children’s Bureau (NCB) and Personal Finance Education Group (PFEG) found that 96% of children aged 7-16 years old want finance education lessons in school.

Tracey Bleakely, Chief Executive of PFEG, says, “We have to ensure that young people are given the skills they need to make informed decisions about their finances.”

Indeed the Department of Education is considering making finance lessons mandatory. In Northern Ireland personal finance lessons in schools are compulsory, whereas there is currently no statutory requirement to teach financial education in England, Scotland and Wales.

The National Curriculum is being reviewed with new plans for all subjects to be introduced in September 2014.

Ministers have said that financial education is being considered as part of this review.

The DFE says, “It is vital that we help young people understand the world of work and how to manage money”.

It is important for children as they grow up to enter adulthood with a grasp of personal finance so they are able to manage their own money effectively, especially as many leave university with large student loans to pay back.

People these days are increasingly finding themselves in debt as a result of poor budgeting and mismanaging their money, leading to further problems when trying to obtain credit or applying for a mortgage.

Teaching the value of money to children should start at an early age at home and it is equally important that we as parents guide our little ones financially.

I know that my young children have said how great it is that when we need money we can just go to the cash machine and get some! They need to realise that we can only take out what we have put in by working for it.

Giving children weekly pocket money is a good way of getting them to understand the cost of things they want to buy as they start to learn what they can afford with the money they have and whether they need to save up for something special.

Many schools are adopting the ‘cash free’ approach which means that no cash is taken into school and parents must register a ‘Parentpay’ account which is kept topped up with money. All school trips and other similar school activities are paid for online, as are school lunches and break time tuck.

While this seems a good idea for the efficiency of running the school day I do wonder whether it detracts from the children’s concept of money.

If they wanted a snack at break time they used to have to hand over 50p, but now no money is exchanged so they think it is all free, even though the system is explained to them.

Formal finance lessons are all very well but children also need to experience the practical side of money management.

Sharon Yewen is Financial Controller at Checkmyfile. She is an FCA and has a degree in accountancy from the University of Exeter. You can contact Sharon at sharon.yewen@checkmyfile.com

Are Car Insurance Premiums Calculated Fairly?

Recently news stories have emerged alleging that a “John” might be more likely to get a cheaper car insurance quote than a “Mohammed”, and that someone with a Gmail account could be offered a lower premium than someone with a Hotmail email address.

Published on 12 Feb 2018 by Jamie Mackenzie Smith

Full Article

The Cost of Incorrect Information on Your Credit Report

Your credit file is compiled from a number of different sources, including payment history from each of your lenders (past and present) and public data as reported by local authorities and courts. The majority of people find that everything held about them is correct, but due to the large amount of information being shared, errors in the information reported can happen, which can lead to issues when you go to apply for credit.

Published on 2 Feb 2018 by Tom Blandford

Full Article

Your Guide to Open Banking

On 13 January, the UK banks embarked upon arguably one of the biggest changes to personal finances since the introduction of computers. Open Banking is aiming to make it easier for banks, lenders and consumers to access and share information, with a view to creating new products and opportunities through innovation and increased competition.

Published on 15 Jan 2018 by Jamie Mackenzie Smith

Full Article

HMRC Bans Credit Card Tax Payments

From 13 January 2018, it will no longer be possible for consumers to use a personal credit card to make a payment on HMRC’s Self-Assessment tax portal. Historically, this has been a popular option as it allows what is often a considerable sum to be deferred.

Published on 12 Jan 2018 by Tom Magor

Full Article

How to Get the Best Deal When Buying a New or Used Car

Buying a new car is both exciting and expensive, but if you know where to look and when, you can grab yourself a bargain. If you take a little time to look into finance or loan deals as well, you can bring down the overall costs significantly.

Published on 11 Jan 2018 by Kevin Pearce

Full Article

Are football clubs exploiting their fans

With Premier League teams under huge pressure to remain in the top flight of English football, the amount lavished on transfer fees and player wages have soared in recent years.

Published on 8 Jan 2018 by Sam Twyford

Full Article

What The 2017 Autumn Budget Means For First-Time Buyers

Wednesday’s autumn budget brought great news to would be first-time homeowners: if you’re buying a home up to the value of £300,000, you won’t have to pay stamp duty for the property. This, the Conservative Party estimate, will benefit 80% of first-time buyers, saving them potentially thousands of pounds on the total cost.

Published on 28 Nov 2017 by Jamie Mackenzie Smith

Full Article

Blacklists - Ten things you probably didn't know

1. Blacklists are not unlawful. No lender is compelled by law to give credit or to give any reason when declining credit. Each may consult several sources of information before making a decision, including any form of list that may exist. Any list containing personal data is automatically regulated by the Data Protection Act 1998.

Published on 9 Oct 2017 by Barry Stamp

Full Article

Is a credit building card a good idea

A credit building credit card is most often used by people that are either looking to improve their credit rating or take out their first credit card.

Published on 24 Mar 2017 by Kelly Luff

Full Article

Which Credit Report Information Can Landlords See

Whenever you rent a property, you will be required to pass some checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to afford to rent the property.

Published on 7 Mar 2017 by Kevin Pearce

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews