How to add rocket fuel to a child’s ambitions
Financial education has been a hot topic recently.
Pretty much every consumer facing financial services provider has jumped onto the idea that maybe their customers of the future could do with a bit more support in understanding the basics of money such as budgeting, saving and paying bills.
And it’s true, they do need more help.
It’s a confusing world out there – especially for the Covid generation, who did a lot of their growing-up under lockdown. If you were a 14-year-old trying to detangle algebra and understand longshore drift via Zoom in 2020, then what chance would you have in understanding the difference between a direct debit and a standing order when it was probably right at the bottom of the school’s ‘must-teach’ list?
OneFamily undertook some research recently and the results are not altogether surprising; youngsters want to know more about money.
"Around six in 10 [14-17 year olds] have conversations about savings around the dinner table and half talk about budgeting"
A lot of the support already comes from home - nine in 10 say that they discuss financial matters with their parents. Around six in 10 have conversations about savings around the dinner table and half talk about budgeting.
This is the generation that will have child trust funds or junior ISAs maturing – so naturally talk at home will turn to, “What are you going to do with the money that I’ve saved for you?”.
Hopefully some will choose to reinvest, and others will use it as a springboard to their future – whether that’s university, a car to get to their first job or the seed money for a start-up business.
"Only 40% of the 1,000 teens we spoke to said that they had received financial education at school"
So what of schools? They are facing huge pressures. It’s not easy out there with long hours, a full curriculum to teach, OFSTED and school league table expectations. Teaching is tough.
Sadly only 40% of the 1,000 teens that we spoke to said that they had received financial education at school – with most of them being taught about money at secondary school.
Over half think that they should learn about it earlier, at primary school, and parents agree - on average they think children should start learning about money at 10-years-old.
"Children absolutely need a sound understanding of money - it enables social mobility and could add rocket fuel to their ambitions"
Charities are also doing their bit. OneFamily is partnered with RedSTART Educate, a charity that works with disadvantaged children across the UK with the aim of improving their life chances and aspirations.
It’s a very important cause to support. And we don’t just donate money, we’ve been hands-on with children visiting our Brighton HQ to have fun sessions with our team that teach them essential life skills – which is especially important during a cost-of-living crisis.
Children absolutely need a sound understanding of money - it enables social mobility and could add rocket fuel to their ambitions. And well done to all the financial services companies, parents, teachers and charities who are stepping up and doing what they can.
You are doing a great job.
But perhaps we need a more structured approach that reaches children at an earlier age, to make saving, budgeting and banking less of a mystery and a lot more fun.
It could be transformational for the next generation.
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