The value of teaching our children about financial education
Gaining an early understanding of personal finance can be an important building block to provide youth with the tools they need to become fiscally responsible adults. It seems like a topic that should have already been engrained in curriculums across schools. However, it has only been about four years since a compulsory financial education programme was put in place in secondary schools across the UK. And despite financial education now being compulsory, a majority of students still report their parents and family as their primary source of financial information.
The mandatory lessons involve education on basic money matters like calculating simple interest and learning how to approach budgeting and saving. The education is based on four aspects; financial understanding, financial competence, financial responsibility and financial enterprise.
A research report commissioned by the All-Parliamentary Group (APPG) on Financial Education for Young People, noted that it would be beneficial for students entering secondary education to have basic and age-appropriate understanding of how to handle finances. Many children begin forming their attitudes towards money around age 7. Therefore, their takeaway was this learning should start to become part of the curriculum at an even earlier age.
Whether the early learning comes as part of the school curriculum or at home, taking the time to begin teaching your children about money and what it means to choose between spending, saving and investing will prove to be invaluable for their future. Financial understanding is a key life skill that will help them thrive later in life.
For more wealth planning tips and tidbits from MASECO read our 39 Steps to Smart Living in the UK.