A new draft curriculum was published yesterday which could make personal finance education compulsory in schools. But will a better financial education help the next generation dodge debt and mis-selling?
Call me a geek, but I think it’s great that finance is finally going to be taught in schools across all of the UK. Finance is already part of the curriculum in Scotland, Wales and Northern Ireland.
And as long as there aren’t significant changes to the draft curriculum that was published yesterday, it will start being taught as part of maths and citizenship lessons in England from September 2014.
Solid financial foundations
Financial products aren’t always difficult to understand. Yet without a solid grounding in the basics, it can be hard to know the right questions to ask about financial products before buying them.
One survey done on behalf of a charity pfeg – the personal finance education group – found that a whopping 96% of 18-19 year olds with credit cards had never compared their rate to check they were getting the best deal. Only 2% of them even knew what the APR on their credit card was.
While some people might be surprised by these statistics, I think it shows how necessary financial education is in our schools. Equipping young people with the confidence to ask the right questions about their money and financial products could make a huge difference to their futures and the future of our banks.
Education for the nation
Better financial education could lead to more people budgeting effectively, and make them less likely to get caught in a spiral of unmanageable debt. It could help more people to think about whether or not they’re getting a good deal on their loans, savings or even current accounts, encouraging more customers to switch providers.
Do you think a proper financial education will make a difference to the next generation of spenders? Who taught you what everything you know about your finances?