Will financial education strengthen the UK’s future?

You’ve said it! Many of these conversations show how many people are genuinely ignorant of the facts of financial life – whether loans, credit cards, mortgages, working out energy bills and so on, as well as the way financial institutions and companies work (or should, at least!). These should all be taught so the pitfalls can be avoided. I wasn’t, like most people, formally taught – I learnt from my parents to some extent, but then the hard way by having to do it. I think I started with a responsible attitude to money because I had little, which helped me to be critical of financial products.

I taught budgeting at my slum school to the non exam classes in the 1960s – Then Thatcher BANNED it – It should only be taught if the subject is part of the Maths exam – otherwise it will be ignored by the children. Passing exams are far more important to children.

I support anything that will help make children better prepared for life. What concerns me most is the fact that so many people live their lives on credit, when they should be saving and spending only when they have enough money, which will save a fortune in interest charges. You don’t need to know anything about credit card interest charges other than the fact that they are all extortionate and the balance must be cleared each month to avoid a continuous drain on your finances.

A major problem is that university students are forced into debt because successive governments have pushed so many people into higher education and cannot afford to support them properly.

Understanding the basics of personal finances will at least give young people the opportunity to tell good from bad. The problem with debit and credit cards is that they encourage impulse spending – you don’t need the cash in your wallet. But used properly they are extremely convenient, and essential for on-line transactions. The key is to use a credit card properly – pay off in full monthly.

We all mostly have to live in debt to be able to purchase a house – understanding the range of loans and financial consequences can only be helpful.

As for university students – yes, we have opened up too many places in poor-standard institutions and courses that devalue a degree, and probably lead too many to think it will give them assured employment. Not so. They need to weigh up the prospects of employment and the financial gain against the cost.

Malc.Moore – I do understand what you say. But entering a downward spiral of debt fuelled by extortionate interest rates is something we need to try to combat – why these lenders are licensed beats me.
I don’t think private schooling may be any better at teaching money sense than state schools – the pupils may not have a home background that teaches frugality, something they may have to deal with if the inheritance runs out.

Malcolm R one important part of this Topic is missing that is Monthly Pay for the Lower Paid and soon to be for those Unemployed; Sick;Terminally ill.I remember Peugeot introducing monthly pay many years ago.When it was payday there was mass absentees the day after.After only 1 week most were very short of money.Mark my words when benefits go monthly Crime Robbery;mugging;Burglary will shoot up as many who managed before become desperate these loan sharks are having a laugh at society and so is our MPs so many out of touch with the Real World.Malcolm R you are wrong about
private schools how many Teachers send their children to state schools very very few that is a FACT.

Financially educated myself. Not a bad thing. However, it’s the few that become the top bankers, judges, lawyers and politicians (and their mates) that will determine the future.

The current bankers are protected from jail by the judges, lawyers and politicians (and their mates). They must be jailed and a new lot, with better morals, put in their place.

The bankers today don’t discriminate between folk that know they’re being screwed and those that don’t. Perhaps the lessons in schools should be just to simply show the difference between right and wrong.

A general rule would be “be reasonable”. Bankers, politicians, lawyers and judges should have been taught this from a young age. Apparently not. What a shame.