Primary schools and colleges should teach financial skills, says MP

Financial skills should be taught to primary school pupils and young people in further education, an MP has said.

Since 2014, financial education has been on the national curriculum for local authority-run secondary schools, with the subject covered in citizenship lessons.

But Conservative MP Peter Bedford has proposed a new law which would go much further, so children can start learning about money at a much younger age.

“Without that education, we are collectively creating the greatest financial crisis of our time,” he argued.

“The problem, quite simply, is that we as a nation are not living within our means.”

Mr Bedford pointed out that two-fifths of people in the UK have less than £1,000 in savings.

This, he said, means money has “become synonymous with anxiety”, with people routinely worrying about they’ll pay their bills, mortgages, tuition fees and grocery costs.

“We have also ignored people’s anxieties about money for far too long, whether they be university students, apprentices or parents not eating to ensure that their children can,” Mr Bedford continued.

“We have high expectations but low means.”

96% of young people worry about money every day

Mr Bedford noted that 96% of young people worry about money every single day, which he said is “extraordinary and deeply depressing”.

“Yet we continue to spend, not least because it is so easy,” he commented.

“Offers pop up on our screens every day, created by marketing wizards who know exactly where we are most vulnerable.” 

Mr Bedford also stated that millions of people are facing “extortionate” rates of interest because of buy, now pay later schemes.

“The debt just keeps on growing,” he said.

Education is the solution

Mr Bedford believes the solution is “treat the problem at source through education”, so young people understand “how money works, the principle of saving and the dangers and opportunities of compound interest”.

“Money habits are formed at an early age - indeed, from the age of seven - yet many school leavers remain in the dark,” he commented.

“The situation does not require extra resource, just extra creativity. In fact, it can bring the curriculum to life.”

Most people who’ve sought debt advice haven’t been taught about money

We want to see better financial education in schools as it teaches essential skills like budgeting, saving and managing debt.

In a recent survey of people we’ve supported with debt advice or a debt solution, we found that 94% hadn’t received any financial education at a younger age.

But significantly, 80% said they believed it would have made a difference to their situation.

And when asked, what topics of financial education would have helped them the most, 77% said budgeting.

This was followed by understanding what credit and debt is (68%) and how to save money and why it's important (62%).