Are children learning the value of money too late ?
A recent survey from icount has shown that 15% of parents with 1 child think that between the ages 0-4 is the best time learn about money. However, it has only been since September 2014 that formal financial education has been part of the national curriculum, which starts at age 11.
Avoiding the same mistakes
At the end of May this year, people in the UK owed £1.479 Trillion, which works out at around £29,000 per adult. The majority of the UK’s adult population never received any money management lessons
For young people, the inability to manage their money may have more serious consequences, especially with a rising population and a housing crisis. For younger people with bad money habits, it’s easier to fall into debt, be scammed and make poor decisions.
How does financial education currently work?
Financial Education in the UK is a fairly recent programme, which aims to provide young people with the knowledge, skills and confidence to manage their money and encouraging children to make intelligent financial decisions as they become older and begin earning money.
Why we need financial education earlier
As the UK (and the world) swings towards an ever more so cashless society, and with more technological financial products and services being produced, young people are becoming lost in the already confusing world of personal finance and make decisions where money in concerned.
Whilst financial education begins at age 11. This only applies to about half of the schools in the UK which follow the national curriculum. The rest are academies or free schools; therefore, they don’t need to follow it.
What parents can do to help
Though the programme doesn’t look like be aimed towards younger children any time soon, parents can play an active role in teaching their children about the value money.
- Prepaid cards– Before your child gets their first bank account, which usually comes with a debit card and a danger of spending everything. Prepaid cards offer a safe alternative and teach valuable lessons about only spending what you have. By loading a small amount on to the card, they have to make wise decisions about what they can spend it on.
- Include your children- Involving your children in some of the decisions you make about money is one really easy way to help develop the right financial behaviours for the future. Start with something small when they are young such as the weekly food shop and as they get older you can include them in more important decisions such as bills and tax.