Children will be taught how to open a bank account, understand basic financial concepts like interest rates and learn important skills to plan for their financial future as part of an £11.5 million boost to personal finance education. This initiative was announced today by Children, Schools and Families Secretary Ed Balls and Treasury Minister Kitty Ussher.
This is a really positive move, in my opinion. When I left school I had no formal personal finance education. The only experience of financial education during my school years was a single lesson when a business studies teacher showed us his credit cards and explained how much money he could borrow on each one - hardly the best thing to teach a class full of impressionable young kids!
If the UK is to get out of the 'buy today, pay later' culture then we need to start with education for children. Debt and poor financial management can have such a negative effect on people as they start their careers and establish a family. Leaving school with a sensible attitude towards money should help people to avoid taking on unnecessary unsecured debt and make much more sensible financial decisions.
£11.5m is probably not a lot on a 'per child' basis, but it's a good start. At least the Government is starting to realise that long-term economic growth can only be achieved when young adults are better at managing their money.
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