This week marks the 6th annual
My Money Week(9 to 15 June) – always a fantastic event, where thousands of schools across the country take part in dedicated lessons, activities and debates to help pupils learn about money. Run by financial education charity
pfeg(
Personal Finance Education Group), it has become a staple in many schools’ diaries, including in my constituency (this year Swindon Link magazine is
offering a prize drawwith what is of course the ultimate prize, Monopoly Swindon edition, to schools taking part!).
This year’s My Money Week takes on a special importance, coming as it does just three short months before financial education begins to be taught in secondary schools through the new National Curriculum for England. I have written on this site before about this subject – which is one that is particularly close to my heart.
I am proud to serve as Chair of the
All Party Parliamentary Group on Financial Education for Young People, which led the charge in Westminster for this significant change to our education system. From September, for the first time, teaching children about money will become a statutory part of the curriculum in all four countries in the UK – and not before time.
The need for increased levels of financial capability – and financial resilience in difficult times – has never been greater. Research by pfeg conducted last year found dangerous gaps in financial knowledge amongst 14 to 25 year olds, with 42 percent unable to interpret the difference between being in credit and being overdrawn on a bank account, and more than a third (36 percent) not knowing the correct meaning of APR. This lack of knowledge has serious consequences for young people’s ability to manage their personal finances, and avoid falling into unmanageable debt.
I am delighted that after years of campaigning by the APPG, pfeg and MoneySavingExpert.com’s Martin Lewis, the importance of delivering financial education in schools is now widely recognised. An Ipsos survey conducted by ING recently found that 88% of adults in the UK supported the principle. Other research has confirmed widespread support amongst teachers, parents and young people themselves.
Thanks in no small measure to the work that pfeg has been doing to support teachers on the ground for the last 14 years, an increasing number of young people have been given the benefit of a better understanding of money, as schools get ahead of the curve through initiatives like My Money Week. This is even before the sea-change in financial education that is on its way in September. There is cause for optimism that the situation will improve.
But does that mean the job is done? The answer, clearly, is no. We must built on this success to ensure that these vital life skills are taught in every type of school – including primary schools, and also the growing number of Academies and Free Schools for which the National Curriculum does not have the same statutory force.
The need for financial education from an earlier age is particularly important. A survey of teachers published by pfeg yesterday found that four in five teachers (83%) believe that financial education must begin in primary school, not secondary school, to be most effective. The findings follow research from the Money Advice Service showing that our financial habits in adulthood are established from the age of just seven years old – a sobering thought that shows the opportunity we are missing by not getting in early in this crucial area.
I look forward to pursuing these next goals with my colleagues in the APPG.
In the meantime, I wish every school, teacher and student taking part in My Money Week activities every success for an interesting and rewarding week.
Justin Tomlinson MP is the Chair of the All Party Parliamentary Group on Financial Education for Young People. For more information about
pfeg
’s My Money Week visit
www.pfeg.org/MyMoneyWeek