Children don’t get a good financial education...
3 January 2019| Last updated on 7 January 2019
All credits: PA
Managing money is a vital skill all young people need to learn...
Yet it seems many teachers believe pupils aren’t being told the essentials.
Research suggests half of the secondary school teachers rate the personal finance lessons delivered at their school as either poor or only satisfactory.
And the vast majority say there’s a significant gap between what’s taught to children in schools and the skills needed as an adult.
Teenage pupils don’t understand the difference between a credit and debit card and most pupils don’t even know where the money comes from.
January is a time when many parents will be getting themselves financially prepared for the new year so it’s a great opportunity to chat with kids about money, too.
While teens might be taught financial education, unfortunately, many teachers think it’s not fit for purpose and believe there ‘s a significant gap between the skills taught in schools and those needed in the real world.
So these 15 key aspects of finance that teenage kids should be taught about:
1. Understand financial paperwork
Know the meaning of important financial information on official paperwork such as bank statements, payslips and utility bills, and interpret it to plan and set a personal budget.
2. Take charge of their own money
And be able to alter their budget if their circumstances change.
3. Understand saving & borrowing
Be able to identify situations where things like credit cards and loans are suitable options.
4. Resist pressure
Understand the ways others may try to influence people’s saving and spending, and demonstrate how to resist unwanted pressure to save or spend money unwisely.
5. Appreciate value for money
Understand there are different ways to calculate the value for money, and that price is only one factor.
6. Compare costs
Be able to compare the overall cost and benefits of a range of goods and services by shopping around and using mental calculations, IT tools and comparison websites.
7. Read the small print
Know about some of the financial products available, such as insurance, warranties and bank accounts, understand the importance of small print and how to work out which financial products are best, and know that sometimes advice may be necessary.
8. Insurance protection
Know insurance gives financial protection from different types of risk, and appreciate the financial and emotional consequences of not being insured if things go wrong.
9. Be wise on fraud
Be able to recognise and avoid potentially fraudulent situations when dealing with money, including how to protect PINs and passwords and keep card details and online identity safe.
10. Investment risks
Know saving and investing money can increase its value and there are risks associated with these rewards.
11. Balance risk & rewards
Appreciate the relationship between risk and reward in different financial contexts including saving, investing, borrowing and gambling.
12. Money worries
Understand emotions may drive financial decisions and that those decisions may lead to stress and anxiety.
13. Focus on the future
Realise that saving or investing money in the short-term can provide for future needs and wants and act as protection against unforeseen events like unemployment.
14. Choices affect finances
Be aware of the potential link between qualifications and earnings, and understand that career and personal life choices such as living independently, continuing in education and being employed or self-employed will have financial implications.
15. Tax benefits
Be aware of taxation and that it’s used to benefit the wider community.