Make financial education compulsory

http://www.moneymarketing.co.uk/politics/make-financial-education-compulsory-say-mps/1043060.article

this is a huge issue and should be brought in sooner rather than later, The amount of people that come to us and don’t even have basic financial knowledge but have credit cards, bank loans, overdrafts and a mortgage is scary to be honest. I think every company should have someone come in and talk to them and their staff about financial issues that they will come across in time. Young people are thrown into life when they leave school/Uni and don’t have a clue about pensions, investments, mortgages etc. And they will never learn unless someone makes them. This is vital especially in today’s climate.

i quite agree Mark. many people i speak to don't have a clue how much they have in their personal pension and how little income they will receive from it when they decide to retire. it's like applying for a job and not asking what the salary is.......

Think it's an absolutely superb idea - i very well remember the heady days of 18 and walking into the bank and coming out with an unhealthy sized overdraft and a  credit card, and almost immediatley spending both. Truth be told i'm probably still bearing the financial scars 12 years later. 

 

I find it very difficult to talk about this without going on a rant. We encourage children to work hard at school so they can get good exam results, and get a good job that pays them well. (Lets not even talk about the costs of going to university) We do nothing to prepare them for dealing with that money when they get it. The advantages they could have are wiped out because they don't know how to manage their money. The really warped thing is, they are only repeating mistakes made by previous generations.

What's more important? Being able to manage your money or being able to ask for directions to the train station in French?

I've run financial information surgeries in my local area. The aim is just to explain to people what they have. The lack of knowledge is truly frightening

a 'Finance' subject 100% should be taught at high school level, even if it is built into Maths, anything is better than nothing. Did I ever learn anything in Religious Education? French? Cookery? even Art? i've never used any of these subjects and many people wont BUT we will all need Financial knowledge at some point in our life.

I think the Government are understanding this now and hopefully it will be compulsory soon. Its actually sad that people keep getting huge loans etc without understanding the long term financial implications.

This is a great business idea as well. 'financial information surgeries' will be popping up all over country soon I think.

It is an excellent business idea. Just out of interest what if any restrictions is there on offering hypothetical financial advice? Is that currently covered by the FSA?

 

as long as you’re not offering 'advise' and are just basically teaching people about interest rates, savings, credit cards, mortgage rates, difference between fixed and variable mortgages etc etc etc I don’t think the FSA will be too strict because you are not selling or investing anything. You might not even come under the FSA, I do think some sort of qualification will be needed though but I don’t know what. this issue should be as important as Health and Safety

 

but yes a great business Idea, especially if it could be government funded!

That's exactly what I offer. I do it in my own time for free. (It actually costs me a small amount) There are benefits from it for me. It has definitely increased my profile locally, and I have had business from it. I make it clear there is no obligation to deal with me, but I have had quite a few people who I've met for appointments after.

Financial coaching for adults is a massive opportunity in my opinion. It would need to be marketed and priced properly though

Educate the kids but start with educating the parents! I have come across parents who ADVISE their kids to go bankrupt after they finish University. They think that is the best solution for them to wipe out the loans, credit cards, overdrafts in one hit. The kid looks up to the parent for advice and if the parent is ignorant of what the implications of bankruptcy are then is there any hope for the kid? To name a few: they cannot apply for certain jobs because they are actually asked if they have ever been made bankrupt, they cannot get a mortgage unless at some silly interest rate, cannot get a loan or hire purchase agreement to buy a car, some landlords won't even rent to bankrupts, and so on ....

 

What! why would a parent do that to there child! that would obviously ruin the start of there life after education. shocking, I have never herd of anything that extreme but im afraid people with that mind set are probably the same people who think 'why work when the government can pay me benefits instead'  This is a much deeper issue!

I'm fairly sure my parents did install some hard principals in me as a child - it  certainly didn't stop me going  as soon as the bank batted it's eye lashes at me.

Most schools do teach this stuff now - When I was at school not too long ago we had 'Citizenship' lessons - I learnt how to write a CV, read an electricity bill, calculate mortgage repayments and fit a plug. These are all things I have since used!

Having said that I have friends who I sat next to in these lessons and they don't seem to remember any of it so perhaps this is less a reflection on what kids are being taught and more about the current attitude towards finances and being responsible.

 

Hey all,

My partner is employed by a large bank and teaches finance in schools and universities. Every evening afterwards when we are discussing her day and latest class etc... She is always alarmed at the lack of knowledge just about every student has in just about every aspect of money, savings, mortgages, interest rates etc... Regardless of them being 12 or 18.

However the problem right now is that most of these lessons are one offs and therefore not enough for the right messages to be drilled in. Unless that changes and finance is added to the criteria then its likely to be forgotten in a weeks time.

She believes that it could be to late to really financially educate current students in the system because its too little too late for them and in many cases bad habits are picked up unfortunately from their parents. Many see living on a credit card to be the way life works because "mum and dad do"

Tackling the next generation may be a far more successful plan for the entire country! 

 

exactly, its not just school kids with zero knowledge on finance, also fully grown adults with mortgages and other loans. we see them every week, they get there telly/couch/kitchen on the drip and think they can just stop paying because they cant afford it and then wonder why they cant get a mortgage.

but as you said, its to late to educate this generation so we MUST start young and maybe the country would be in a better position in 20 years? people might not take out huge mortgage's that they cant afford?? Financial teaching should be put on the syllabus, no question.

I heard on the news that there is the intention introduce financial education as part of curriculum at schools. I also know that R3 - Association of Business Recovery Professionals involved a number of Insolvency Practitioners to volunteer to go to schools to give a talk about handling money and debt. I was a volunteer and visited schools. Very important to target kids at the right age! If they are below 15, they haven't got the slightest interest, the target should be 16 and over as they either intend to start work (if they can find employment!) or University (student loans, etc). As for the parents, I have suggested them to be called to a meeting at school too - they certainly could do with some talking to, irrespective of how wealthy or hard up they are. Some of the most spoilt kids you find who have the worst attitude to spending ever, come from affluent background.