Marc Burman, Certified Financial Planner (CFP) at Foster Denovo, gives his views about how to educate your children about all things related to personal finance: from explaining the basics – value of money, spending to growth.
Burman says in his blog: “Currently children do not receive any financial education as part of the school curriculum. In my view, this leaves children unprepared for the realities of adult world and potentially vulnerable to easy access credit that could set their financial futures off to a poor start. When it comes to discussing money, I recommend encouraging children to talk openly and regularly about money, so it’s not seen as a taboo subject.”
UK investment platform interactive investor has recently published a report calling for five changes to financial education, which was made a statutory part of the curriculum in England in September 2014.
“The current approach to financial education is in need of an overhaul five-years on since landing on the nation curriculum. Year after year, our Moneywise Personal Finance Teacher of the Year Award showcases the ‘best in class’ teachers who are delivering innovative financial education lessons in school.”
Interactive investor is calling on the government to do the following: make financial education a standalone subject in both primary and secondary school; financial education should be given more time in classrooms; there should be clearer guidance for teachers on what financial education should cover; greater support and tools needed for teaching financial education and finally listen to young people.
Moira O’Neill, head of personal finance, interactive investor, says: “The current approach to financial education is in need of an overhaul five-years on since landing on the nation curriculum. Year after year, our Moneywise Personal Finance Teacher of the Year Award showcases the ‘best in class’ teachers who are delivering innovative financial education lessons in school.
“But it shouldn’t just be the lucky few seeing this type of hands on, practical innovation in their schools. We’d like all children to get these opportunities, and research from leading academics at The London Institute of Banking and Finance suggests that children want to learn more about money, too. Government need to mandate time in the curriculum for financial education, and make sure teachers have the right guidance to teach it – this would be far more achievable if it was a standalone subject.
“The last report by the ‘All Party Parliamentary Group’ on financial education for young people2 found that one-in-five financial education teachers said they are not confident about teaching the topic – presumably because it is not a stand-alone subject. So, while individual schools are leading on this, we need the government to implement a more joined-up approach to ensure best practice in schools.”
Burman concludes by: “Allowing your children scope to make small financial decisions while they are young and letting them make their financial mistakes at an early age is all part of the learning process. Instilled with the right guidance, your children will learn to respect and understand money and manage debt in a positive way. I believe having this knowledge and awareness when they are young can provide them with a great start to their financial roadmap through adulthood.”