The ‘Future of Financial Education’ previously appeared in The Huffington Post, 26th September 2016.
September 2016 marked the second anniversary of the inclusion of financial literacy on the national curriculum in England….As it currently stands, children in key stage 3 are taught about the functions and uses of money, the importance and practice of budgeting, and managing risk. When in key stage 4 they are taught about income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.
Though the inclusion of financial literacy on the syllabus is definitely a step in the right direction…
We shouldn’t see this as the end of the debate, rather the start of the journey and there remain challenges that need to be addressed.
For a start, we need to ask ourselves whether it’s right that financial education be left up to schools.
The pressure on teachers to achieve strong exam results is well documented. Increasing competition for university places, changes to grade boundaries and easy access to school league tables have all served to increase this pressure. Teachers often simply can’t find time to teach non-core subjects, meaning that financial literacy is being squeezed out of already packed school timetables.
What’s more, the changes made to the curriculum in 2014 only apply to around half of the schools in England. Academies and free schools have the freedom to teach outside of the prescribed syllabus.
Added to this is the cost of proper implementation. Some schools, particularly those with enterprise or business specialisms, have wound business and money management modules in to the curriculum. Other schools partner with local business or charities, such as Mosaic, to help provide mentoring and the development of practical business skills.
However, for the majority of schools this is not possible. Access to the right resources, content, as well as the proper training for teachers, is expensive and therefore in short supply.
Perhaps we ought to consider whether financial education should extend beyond the school gates. We should think about doing more, as parents, at home, to ensure our children grow into financially competent adults.
There is an added benefit to instructing children at home: it provides a hands on opportunity to learn about money. Knowing how to balance a household budget, or how to access appropriate levels of credit, are not the same as actually living a lifestyle commensurate with one’s income and outgoings, and developing a healthy attitude towards money and managing it responsibly.
Knowing is not the same as doing.
It’s crucial not only that children understand the theory, but also develop positive behaviours and habits. Lessons might be drawn from the campaigns to improve children’s diets, famously championed by Jamie Oliver. Despite significant improvements to school meals and education, real progress in changing eating habits was slow. It was not enough for children to simply know what a good diet looked like; engagement with parents as well as children became key to successfully embedding change.
To really entrench responsible financial behaviour, we need to not only teach children at school but engage with them outside of the classroom, too. Young people need to learn first-hand how to spend and save responsibly.
The changes brought in in 2014 represent a positive step but we must not stop there. We must continue to push for improvements in the curriculum and give schools the time and the resources they need to teach effectively. Lastly, and perhaps most importantly, we must work with our children to give them the tools to develop financial confidence and competence.