Most young individuals are unaware that financial education is part of the school curriculum.
In your old days at school, did you pick up much about personal finances: mortgages, credit cards, and loans? Back in the day, teaching these subjects wasn't part of the national curriculum, so it's fair to say that not many of us became financial whizz-kids.
Fast-forward a decade, and I was still a student, so I must've brushed up on some of this knowledge, though I admit it probably wasn't a significant part of my education.
The things I learned in school that have stuck with me over the years mostly don't apply to my day-to-day life, like the science behind polarized light waves or the plots hatched against Queen Elizabeth I (Ridolfi, Throckmorton, Babington... these names still ring a bell).
My understanding of borrowing money, tax, and pension contributions? That's a different story. I remember something about it, but it certainly didn't leave a lasting impression.
A quick chat with some school pals reveals I'm not alone in this. It seems none of my classmates remember learning about their personal finances either.
Research from Boon Brokers adds weight to this anecdotal evidence. In a survey of 1,000 young adults, 74% of respondents claimed they weren't aware that financial literacy was even part of the curriculum. As a result, 87% confirmed school isn't their primary source of financial education, with 39% of them revealing their parents were their main teachers in this subject.
REAL-WORLD IMPACT
Financial education is a crucial life skill, and it's high time we see a change in the curriculum so students can become more financially literate as they venture into adulthood. The existing advice gap remains wide, and reports suggest that young adults are seeking advice from unregulated, uninformed, and sometimes questionable sources.
The greatest void appears to be around mortgages, with 58% of respondents stating that their schools didn't provide any resources for them to learn about mortgages. Conversely, 92% of those surveyed expressed a desire for mortgages to be taught in schools.
Giang Hughes, a business support manager at wealth management consultancy firm Simplify Consulting, agrees, stating, "We already see a huge advice gap that is yet to be reduced in a meaningful way, and many reports suggest young adults are seeking advice from unregulated, uninformed, and sometimes questionable sources."
FROM THE TEACHING FRONTLINE
Liam Hussey, head of PSHE at Ormiston Bolingbroke Academy in Cheshire, has taken matters into his own hands. Frustrated with financial education's poor implementation, he scrapped the existing PSHE curriculum to create a fresh program tailored to his students' needs.
Hussey developed a comprehensive, six-week financial literacy program, covering topics such as mortgages, credit, banking, and even loan sharks. The program is divided by year group to provide a progression in learning, and students engage in hands-on activities such as budgeting exercises.
The feedback from students has been positive, with many finding the lessons relevant and engaging. In fact, student response surveys show that the financial sections of PSHE are amongst the most favored topics by students.
Despite the success at Ormiston Bolingbroke Academy, the implementation of financial education varies greatly across schools. Some institutions lack the resources to develop comprehensive programs, leading to inconsistencies in quality.
Hussey calls for a national bank of educational materials that teachers can access easily and adapt to their classes. This would help standardize financial education, ensuring a consistent and high-quality education for students across the country.
- Despite learning about polarized light waves and historical conspiracies in school, my understanding of personal finance, such as mortgages, credit cards, taxes, and pensions, was not as robust.
- It's surprising that financial literacy was seldom part of the school curriculum, as personal finance plays a significant role in our adult lives.
- More than half of the young adults surveyed in Boon Brokers' research stated that their schools didn't offer any resources on mortgages, indicating a gap in financial education.
- Given the importance of financial literacy, one might expect a greater emphasis on personal finance in the school curriculum to better prepare students for their future.
- In agreement with Hussey, Giang Hughes from Simplify Consulting asserts that the existing advice gap could be reduced if financial education were made a priority in schools.
- Liam Hussey, head of PSHE at Ormiston Bolingbroke Academy, has made a surprising move by scrapping the existing PSHE curriculum to create a new, tailored financial literacy program for his students.
- A national bank of educational materials for financial literacy could be a surprising yet effective solution to ensuring a consistent and high-quality education in personal finance across schools in the country.
