Member Article

MPs debate compulsory financial education in schools

Today MPs debated the motion that young people often grow up “without the necessary level of financial literacy”.

The Financial Education and the Curriculum report, was put before MPs, calling for education on personal finance in schools, with the aim to prevent personal insolvency problems and debt.

It suggests training of teachers, appointment of a dedicated member of staff to be a ‘champion’ of financial education, and the provision of compulsory money lessons in schools.

Kate Nathoo, regional director at Thesis Asset Management hopes that today’s debate will encourage industry’s pleas for financial education will be taken more seriously.

She said: “The industry has introduced a new 16+ qualification - The National Securities & Investment Certificate (ISI). This is a Chartered Institute for Securities and Investment educational initiative.

“It is hoped that many state schools will be launching this course in the future. This will provide students at a young age with an understanding of financial services and products.

“Through a better understanding of finance, young people will hopefully be able to make more informed choices about financial matters, rather than relying on the trial and error approach which is so often used by those who are naive of finance.

“We very much hope that in the next couple of years, the Government and all of the relevant industry bodies will become as excited about the prospect of financial education at schools as we are.

“It should be mandatory to learn about finance, because as an adult, all aspects of your life, whether that is job, travel or family will revolve in some way around money. This fact cannot be escaped or ignored for any longer to the detriment of our nation’s youth.”

Liz Field, CEO of the Financial Skills Partnership, said, “High quality financial education to promote competent personal finance is an important first step.

“Our young people are the business leaders of the future. The more they are equipped with the skills and confidence to use finance, the more young people can apply these skills to run, build and grow successful British enterprises of the future.”

This was posted in Bdaily's Members' News section by Tom Keighley .