View more on these topics

Classroom courses on cash values

The industry knows well informed consumers are better equipped to understand their finances and the best place to start educating the public is in school.

The Government is encouraging the public to take more responsibility for their finances. By the time the next generation of children grows up it is likely there will be very little welfare provision to assist them.

People have been talking about the need to make children more financially aware for a long time, but it is hard to fit it into the already over-loaded school schedule.

However, since September financial education has been included in the Personal, Social and Health Education (PSHE) syllabus on the school curriculum.

Although it is not yet compulsory, the Personal Finance Education Group, an independent organisation, has been established to promote the education of all UK school pupils about financial matters. The intention is that they will be able to make independent and informed decisions about their personal finances and long-term security.

PFEG will work in conjunction with the Department of Education and Employment and is funded by the personal finance industry and the FSA.

The education group will ensure teachers have accessible and effective guidance and support. It will be launching a quality mark on November 6 that aims to assure teachers&#39 personal finance education resources are of a high standard.

One company already aiming to obtain a quality mark for its involvement in this initiative is Britannic Assurance. It is investing £250,000 on its national education initiative that will be available free to all UK secondary schools.

In an effort to capture the attention of the 14-16-year-old audience, Britannic has gone for a soap opera style approach called Britannic Street. The central storyline focuses on four main characters facing a variety of financial challenges.

Britannic head of marketing David Newman says studies show children want to understand more about finances and educating children will also have an impact on parents and teachers. He says: “These children are our future customers and it&#39s good for the parents to see that we are doing something for the community. This is a tangible way of demonstrating Britannic&#39s family values.”

Teaching children about finance will make them confront the reality of their situation. They will learn that there is a big difference between spending now and getting into debt and saving for the future. The programme will encourage children to get into the saving discipline.

Newman says: “By creating a sense of responsibility and imparting knowledge, we are letting children take control of their destiny.”

The way people manage their finances has changed. Not long ago there was a great sense of shame about getting into debt but now most adults have a credit card.

Children who choose to further their education will find themselves facing a great deal of debt.

Most students leave university and begin their working life with several thousand pounds of debt and the reduction in grants. The introduction of student taxes will make this situation worse. An appreciation of the value of money might teach them how to borrow and maintain a sense of control.

Children will learn how to confront the reality of their financial situation but more importantly they will be used to discussing their finances. They should learn from an early age that finances are complicated and don&#39t have to be dealt without help.

This just might lead more of them to seek financial advice in the future.

Recommended

Caps that do not fit and letters that must be writ

No one is ever going to get rich quick while working as an IFA. This is certainly true of those looking to deal with stakeholder pensions, within whose 1 per cent cap thousands of IFAs have quietly believed the price of their advice would not fit.So what a relief when Misys gave its public backing […]

Specialist help for IFAs

Finance marketing specialists The Insurance Marketing Department is to offer a service to help IFAs wishing to switch their business from commission to fee based. The IMD says the move comes as a result of the 1 per cent maximum charge the Government is set to impose on IFA&#39s commission. The service will include a […]

Flying start for Isa season with early upswing

The Isa season is off to a flying start with September seeing the first rise in monthly sales since March, according to Autif figures.Net Isa sales for September rose by 3 per cent to £616m from £598m in Aug-ust, the first rise in sales since hitting £2.3bn in March.Seasonal trends in Pep and Isa sales […]

House prices on the up

The average price of properties bought or sold in the UK rose in October according to Nationwide Building Society. The average price paid for a house crept up by 0.9 per cent to £81,036 from £80,307 which makes the average price 9.9 per cent higher than the same period last year. Nationwide planning divisional director […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment