By According to the DCSF, 'financial education is a cornerstone of PSHE' and has featured in the PSHE and Citizenship curricula at Key Stages 3 and 4 since 2002. So why, every day at the CAB, do I speak to young people – some of whom started Key Stage 3 in 2002 – who have signed up to credit agreements they don't understand; or have fallen behind on their council tax to keep up their HP payments; or who believed the bailiffs when they said “Let us in or we'll call the police”? Why do only 38% of 16-24s know how much they have in the bank? Remember – 17.6% of 18-24s are not in education, employment or training. If you don't know how much of your £101.90 Jobseeker's you've got for the rest of the fortnight, you're probably in trouble.
In the current curriculum, financial literacy appears tacked on. The DCSF website Teachernet points out that 'it is not a compulsory teaching subject in its own right', and lists a PSHE framework in which credit doesn't get a mention. For younger children, financial education is centred around Child Trust Funds – a wonderful Labour policy, but the Child Poverty Action Group has raised concerns about the appropriateness of drawing children's attention to their different families' respective capacities for saving.
Moreover, the government-funded Personal Finance Education Group suggests bringing in 'volunteers' from HSBC for financial education lessons in primary schools. Is it just me, or is employing the banks to teach kids about money a bit like getting Playboy to teach them about sex?
It's that comparison between financial education and sex education that I find most compelling. If the papers are to be believed – and let's pretend for a moment that they are – you can't move for condoms in the schools these days. Kids have got sex ed coming – excuse the phrase – out of their ears, and rightly so: if young people are unprepared for sex they're left open to major disruptions to their life, career prospects, psychological wellbeing and health.
But can't we say the same of those young people unprepared for dealing with debt? Why isn't financial responsibility given as much emphasis? Why not give them a JSA-sized wad of Monopoly money each, set them to making a budget and see if they remember to save some for the water bill? Why not get the local CAB or another debt advice agency in for an afternoon? It is another addition to an already crowded curriculum, and I'm sure any teachers reading this will ask where exactly I think this could be shoehorned in; but I'm also sure they can think of at least one thing they'd be happy to drop. One less Wake Up Shake Up session a week wouldn't kill anyone, for instance.
We can't rely on parents to teach financial literacy – not only because so many parents are struggling with their own financial problems, but because so many young people have financial experiences significantly different from that of their parents. More young people than ever before are going to university – how can parents who live on weekly wages teach their children to budget for a thousand pounds per term? How can parents in receipt of housing benefit prepare their children for the responsibility of paying rent – or vice versa?
Increasing and improving the provision of financial education would be a vote-winner as well as a powerful weapon against poverty: according to a YouGov poll for Insight Investment, 87 per cent of people felt financial literacy should be introduced as a compulsory topic to the school curriculum. Make financial education compulsory; make it independent of the banks, and of anyone else who has an interest in getting young people into debt; and make it relevant to young people's lives. Teach them about their rights when they sign a credit agreement. Teach them that no matter how many times the bank calls them, they need to pay their rent before they pay their credit card bill. Teach them about bailiffs. It will save us all a lot of money in the end.
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So how these youth clubs could be funded might be found in a crystal ball.
http://www.timesonline.co.uk/tol/life_and_style/education/article6841387.ece
Whilst at school I was given the opportunity to go into an ILU (Independent Living Unit). We were responsible for a small home, 3 bedrooms, a living room, kitchen and bathroom. Although monitored, we attended school, but spent our freetime in the ILU where we had to cook, clean and generally take care of ourselves.
I'm not suggesting it was a totally sound project, it gave us a certain amount of freedom that we abused by ensuring we had beer, we had late night films and we would spend our shopping budget on crisps, popcorn and soft drinks, but before long we did realise that even with our bootleg beer and fags, we had to eat properly. We needed decent food, so we worked together to plan meals and when it came to shopping it eventually became a quest to get the most from our budget as we could. You can only go so long without toilet roll!
I know this type of thing would be extemely difficult with standard schools, not every child can go to boarding school, but there must be a way of simulating an ILU. Some way of explaining a budget in real terms, not just talking about it in a classroom.
Something to think about and something I'll no doubt be thinking about until I have an answer for the local comprehensives.
It's no wonder kids don't see the point in learning maths if they're not being shown the practical applications.
Go to the QCA website.
I think the priority would be the occupant of Number 10 Downing Street first
Also please teach basic arithmetic.
Wouldnt it be easier just teach maths to all so they understand how much things cost ?
And if i may sex education should be taught ( in a ideal world) at home , I know that i am proberly alone on this but i do think we try and teach to much in little time we should concertrate on the basics and remember its quality not quantity .
ricki
Sorry for the bad spelling not had much time to pratice this week due to outside pressues
I'd be happy for my daughters to be taught credit management and personal finance education at school INSTEAD of that most useless of subjects Citizenship. That subject is a total waste of time imho. My daughter's feel that the subject is a waste of valuable time-perhaps when they could be doing extra P.E. or studying another subject eg Classics, Japanese, Economics.
I do see the need for sex education to stay in the classroom where students can discuss the subject with their peers in a supportive environment.
Considering some of your previous posts, perhaps you should attend some of your daughter's citizenship lessons.
However she sees it as a waste of time but maybe she is lucky that we do debate at home and other children would not exchange more than half a dozen words with their parents a day.
At my daughters' grammar school critical thinking is studied as a separate subject but then they do not waste time on crowd control as the girls are well behaved, are engaged and want to learn.
Ricki, I realise that some families would not have the knowledge, ability, experience or inclination to educate their offspring in financial matters and by that I include bank accounts, insurance policies, loans, mortagages and the legalities surrounding these.That's why lessons in schools on the above would benefit everyone as long as there was no sponsorship by the local building society ie free pens! I know that when I bought my first house at 21 (as soon as I graduated) I had to sort out the mortagage, various insurances, tv license etc myself. I can not remember my parents helping me at all. I hope that my husband and I are and shall cover all of these areas. The topic of the moment in this house is student loans, it's a couple of years off but they are very much on our minds....groan.
I read with horror your posting the other day regarding the 186% interest you were charged.
No need to appologise for your spelling! There is no spell check facility here (if you really wanted you could type up in word then sepll check then paste into the comment?)and I can easily read your comments.
My typos I know are always as issue.
I have not opted out of teaching my girls sex education but I have followed the approach answering only the questions that are asked of me and NO MORE. I have seen the detailed booklet that my girls have stowed away in their bedrooms and they know that I am here if they need me.
Agree on schools teaching household budgetting, Applied AS Business teaches this but everyone choses or is able to take an extra gcse.
As per the new national curriculum, critical thinking is included in all subjects, but only citizenship applies it to real world events, hence its greater value. As an academic subject critical thinking fails to be properly applicable, as it deals with logic in the abstract.
Also, though you may talk about current affairs in your household, you do it, from what I can surmise, is a limited viewpoint. Surely it would be better for your children to hear more than one point of view? Coincidently this is one of reasons citizenship was introduced, that is to allow children to explore different areas of society and the polity with a critical eye.
Most western countries have some form of civic education, and those that do have a far higher rate of engagement in their communities and a higher turnout in elections.
I understand and sort of agree with you , but i am worried how it would work as different parts of the comuntiy deal with it different , I think the banks should have a roll in being open and honest when selling a loan and credit , I know this sounds crazy but i think there should be a law on the amount of intrest on a loan , We were turned down by the bank for a small loan , we ended up using provident that charged us 186% intrest on a £300 loan .
as for sex education i agree there should be a enviorment at school where the can talk and discuss it , but a one size fits all approch doesnt always work and i belive that parents should teach that and budgeting ( in a ideal world )
Also citzinship 100% agree
ricki