More young people than ever before say they worry about money – 71% in total (2017: 62%), increasing to 81% in the 17-18 age group.
The London Institute of Banking and Finance’s 2018 Young Persons’ Money Index, which tracks the impact of financial education in schools, also found that most young people – 83% – say they want to learn more about money in school.
Education can be a very powerful tool in helping to create more financially confident and competent consumers. Getting financial education on the curriculum was a good start. But very few schools are teaching standalone personal finance qualifications – it’s being squeezed into other subjects. Their research suggests that the current approach isn’t having the impact we all hoped it would.
According to this year’s index, 62% of young people now say they receive financial education in school but the amount of time spent on financial education has dropped drastically. 52% of students say they have access for less than an hour a week to financial education, with most receiving considerably less than this.
To really be financially capable, young people need help understanding the practicalities of managing money, day-to-day and for the long term, and teachers need support to deliver that. So financial education needs to be taught in the right context, and teachers need the right tools and materials.
The goal is to help students leave school with the essential knowledge they need to manage money well, and to be able to make informed decisions. The London Institute of Banking and Finance are calling for more guidance to be given to all teachers on what they should cover, for a mandatory number of hours to be dedicated to it and for schools to be able to provide evidence of impact.
Otherwise we risk another generation growing up without the essential knowledge they need to manage money well.
The London Institute of Banking and Finance is a member of the Youth Financial Capability Group which has developed Financial Education Planning frameworks to support teachers, and which have been sent to all schools.
And they’re doing what they can to improve access to standalone qualifications – providing specialist personal finance qualifications which schools can choose to offer, which they know really does shift the dial for those students lucky enough to get access to them.
From student to teacher
Financial education gives young people the skills, knowledge and confidence to plan for all financial eventualities in life.
Ellie Ashbee once studied the London Institute of Banking and Finance qualifications and is now teaching them. Read her story on how educating young people on personal finances is a needed life skill and how it made a difference to her.
The one thing every young person should have: dedicated financial education for a broad and balanced curriculum.
Get started today with our qualification.
Find out more on our website.