We have asked Lisa, another young person who has now started at University, to share with you
12 things about money, she wishes she was taught at school!
Being an adult and managing your finances can be a struggle for some of us. We all know that we should plan, budget and take care of money and our spending. But how many of us do it? We are supposed to rationalise each purchase and think upfront about whether we can afford something and whether we need the item we want to buy. Or is this purchase just a way of satisfying our infinite wants?
Most of us wish we learned about money before our 20’s so by the time we are 30 we have some savings, investments and we understand how to manage the money.
We wish we didn’t make so many mistakes, didn’t waste hundreds of pounds on useless purchases. We wish they taught us more about money at school," says Lisa.
Government research provides this background. :
Why financial education matters for your children
"The skills, knowledge, attitudes and behaviours that help people to manage money and achieve good financial wellbeing begin to develop from an early age. Research shows that financial behaviour starts to be shaped between the ages of three and seven, and long-term financial outcomes can be predicted from skills and behaviour in children as young as five.
Too many children and young people are unprepared for the money decisions and challenges that lie ahead. Almost four in ten (38%) of 7 to 11 year olds do not have a bank account of their own, and less than half of 11 to 17 year-olds feel highly confident managing their money. Of those 7 to 11 year olds who receive regular money, less than four in ten (37%) say they regularly save some of it.
Financial wellbeing is an important factor in supporting children and young people’s mental health now and in the future. Almost a fifth (17%) of 16 and 17 year olds report feeling anxious when thinking about their money, and this figure rises to 50% of 18 to 24 year olds.
The increasing digitalisation of money and financial transactions brings opportunities, but also challenges. With reduced use of notes and coins, there are fewer opportunities for children to witness or make transactions in a tangible way. More than a fifth (22%) of 7 to 11 year olds have paid for things online, and close to four in ten (38%) of those did so without adult supervision. Access to in-game purchases, ‘loot boxes’ and online gambling, and young people being the target of fraud, all demonstrate the importance of strengthening children’s awareness and understanding of the financial landscape around them early on.
Financial education in school – alongside support at home and in the community – will help children build foundations for future financial wellbeing and resilience. Children who say they learned about managing money in school do better on many measures of financial capability than their peers.
They are more likely to:
◼ save up frequently
◼ have a bank account, and
◼ be confident managing their money.
Financial education helps children learn how to manage their money now and in the future, choose the best financial products and services and protect themselves from fraud and exploitation.
Without high quality financial education, all children and young people are at some risk of having poor financial capability. This risk increases amongst more vulnerable groups, including disabled children and those with a long-term illness, children looked after, young carers and those from low-income households8. It is particularly important to ensure that the approach to financial education in schools meets the needs of these and all children and young people."
A very big thank you to the following studets at LordLawson for sending additional questions for the coures. Thank you Sandra Kaima, Bola Okuyiga, Violet, Sam, Anya, Kenzo and Amy!
Now is your chance to learn the basics of money!
What you'll learn: