On the Money: Lessons in cash that will pay off

Teaching money skills in school can stop people getting stuck in adult life
Fast learners: My Money Week teaches kids about looking after their money
Weef
Simon Read13 June 2017

Let’s be honest, few adults find it easy to manage their money. There are lots of reasons, but a lack of basic budgeting knowledge is key to why so many of us struggle to get through the month until payday.

If only money skills had been taught at school, many more people might approach their finances with greater confidence.

That’s the thinking behind My Money Week, an annual event in its ninth year which runs until the weekend. It’s a programme of events in schools developed by Young Enterprise. Its aim? To give young people the skills, knowledge and confidence they need to manage their money.

This week students have been handed a special financial education newspaper and can enter a competition to produce money melodies, songs, raps or jingles. There’s £500 up for grabs for the winner’s school.

That may sound fun, but it’s a serious issue, warns Russell Winnard of Young Enterprise.

“Financial capability is an essential life skill and a lack of financial education can affect nearly every aspect of a young person’s life, from their mental well-being to their performance at work and even their personal health,” he points out.

The week is being backed by MoneySavingExpert founder Martin Lewis, who says: “In our increasingly complex consumer world, it’s important to get young people thinking about how money works, and who’s trying to sell to them, as early as possible.”

Parents can help by teaching children about money matters at home. Joe Green of Experian reckons the easiest way to do that is by getting kids talking about money.

“It’s vital that children are encouraged to discuss money matters from an early age to help them develop positive attitudes, values and behaviours,” he says.

And start early. Research from the University of Cambridge suggests children’s money habits are set from as early as the age of seven.

A good tip is to encourage kids to earn their pocket money, rather than simply handing it over. Spending an hour or two earning cash can help children learn the value of money early on, and money worked for is less likely to be wasted. Parents can help further by introducing financial goals, such as saving for games.

“It can be fun but it’s actually financial planning, which is a critical life skill that will serve people well throughout their life,” says Green.

To find out more about My Money Week and financial education in schools go to pfeg.org/resources/mymoneyweek.