Financial education has been part of the national curriculum for council-run secondary schools since 2014, but 10 years later it still feels like progress is still not complete.
When it was introduced, there was an option for academies and free schools not to teach it. Some places have introduced it, but most don't.
A recent survey by Foresters Friendly Society found that only 38.5 percent of Gen Z respondents (ages 14-25) indicated knowledge of annual ISA contribution limits. However, this number exceeded that of Millennials (ages 26-35), and she was the only one in three who knew the correct amount. amount.
When it comes to their understanding of inflation, Millennials and Gen Z are evenly split at 48% and 46%, respectively.
But an interesting fact is that one-third of Gen Z respondents admitted they didn't know the answer rather than guessing, while twice as many Millennials answered the question incorrectly than said they didn't know the answer. That's what he answered.
These numbers are not only surprising, but also concerning, as financial education would have had an even more positive impact on young people's understanding of money 10 years after its introduction.
But is it because we are late in teaching it in schools, or is it because it is taught too late?
This is in line with last week's evidence conference, where many advocates called on the government to prioritize financial education in primary schools from an early age, saying it is currently “at risk”.
One of the panel members, Louise Hill, CEO and co-founder of Go Henry, a prepaid debit card and financial education app that aims to teach children and young people how to use money, was a member of the Education Select Committee. Submitted evidence to the meeting's opinion. Research on strengthening financial education.
I wonder why there is no progress, but what's even crazier to me is why are we waiting until middle school to teach this?Citing several studies, he said that 60% of children do not remember receiving financial education, and less than 40% understand about interest rates.
Additionally, the Center for Social Justice called for an “urgent rethink” of how financial education is approached.
A 2022 study by the think tank found that two-thirds of young people who experienced financial hardship believed that better financial education would have helped them.
When you look at where we are today in terms of education provision, and when you read statistics like this, you see so many people leaving school because they feel they don't have enough knowledge. is alarming.
It's crazy to me how we can be still about such an important topic in 10 years.
I wonder why there is no progress, but what's even crazier to me is why are we waiting until middle school to teach this?
Developing these habits from a young age can be the difference between someone who is likely to fall for a scam and someone who knows how to ask the right questions.
If you're passionate about teaching financial education to young people, you've probably heard this quote a million times. But for those who haven't heard of it yet, here it is.
Behavioral experts from Cambridge looked at past research to find out how children learn in general, and about money in particular.
They conclude that financial habits, including the ability to plan ahead, are typically formed from infancy to age 7.
Of course, that doesn't mean that if you miss that period your children will be sentenced to a life of debt and bad financial habits. Because this can always be influenced by proper education.
But knowing this information, it seems like the simplest solution is to start introducing this concept from a young age.
Financial skills are invaluable, and financial literacy is a lifelong skill.
The impact of incorporating it into our conversations and lives from an early age is immeasurable.
Sonia Luck is deputy news editor at FT Adviser and author of the recently published book Loose Change: Tina Learns to Save.
