Children are leaving school without any knowledge on one crucial subject

Everybody agrees that a robust financial education is important, but less than half of children receive one. Money coach Talia Loderick says we all have a role to play in closing the gap – from parents and carers to teachers and schools

When asked why students were leaving school without key financial skills, teachers said other subjects took priority (Getty)

Were you given a financial education? By your parents? Carers? Teachers? If you were, you were one of the lucky ones.

The unfortunate truth is that many of us weren’t taught how to manage money. Yet every day we earn, we spend, we give, we receive, we borrow, we lend.

Financial education helps people develop the knowledge, skills, attitudes and behaviours to make informed decisions about money, and to manage it well. While maths will teach you what percentages are and how to calculate them, financial education will help you consider whether or not that 10 per cent discount is a good deal.

People who are taught about money are more likely to be active savers, have more positive attitudes towards money and feel confident managing money. This matters because money impacts our lives daily – from our relationships, to our mental wellbeing, to our physical health.

Attitudes towards money develop between the ages of three and seven, so financial education needs to begin early. Yet research by the Money and Pensions Service found that less than half of children – 48 per cent – say they’ve had a meaningful financial education.

As soon as I mention my work, people, especially parents, exclaim: “It should be taught in schools!”. And it is! Well, kind of. Money is on the curriculum in all four UK nations, usually as part of the maths and numeracy, citizenship and personal development subject areas.

However, the age at which schools are required to deliver financial education differs. It’s on the curriculum at primary and secondary level in Wales, Scotland and Northern Ireland, but only secondary school level in England – and some schools, such as England’s academies, don’t have to follow the curriculum at all.

Even for schools that do follow the curriculum, not everything on it is taught because, well, there’s a lot to teach, and timetables are packed enough as it is.

Which helps explain why, although almost all teachers – 96 per cent – think schools should offer financial education, 76 per cent of teachers said the majority of pupils finish education without the financial knowledge they need for adulthood, according to research by MaPS.

When asked why students were leaving school without key financial skills, teachers said other subjects took priority; that they lacked the confidence or skills to teach pupils about money; and that they weren’t sure where to find the right support and resources.

I spent five years delivering financial education workshops to 11-to-19-year-olds in schools and colleges. I covered everything from financial goal setting, budgeting and saving, to student finance, payslips and pensions.

I learned that young people want to learn about money. Yes, in some cases it’s because they want to be millionaires! But often, it’s because they want to be able to take care of their families and friends.

I learned that there are many teachers, schools, charities and organisations doing great work in delivering financial education to pupils. But I also learned that teachers need more support in order for financial education to be taught in all schools. Support such as financial education being included in teacher training courses, a financial education lead in every school to ensure it’s being taught across subjects, and ensuring teachers have easy access to resources to help them plan lessons.

Then there’s the part we play, as parents, carers, and extended family members – because education doesn’t start and end at the school gates.

As a parent or carer, you can find out what is being delivered at your child’s school and ask what you can do to offer support.

At home, it helps to teach children about money by age. For three- and four-year-olds, that could be counting games and playing shopkeeper; for five- and six-year-olds, shopping trips help show them what spending and saving actually looks like; for children aged seven and eight, introducing pocket money will give them a chance to understand their finances on a practical level.

When they become teenagers, it’s a good age to give them financial responsibility. One way to do this is to talk them through your own financial responsibilities. You could go over your household budget with them, and take them through what comes in and what goes out every month. You’ll find more ideas and activities for teaching children about money in the free Talk Learn Do resource for parents and carers on the Money Helper website.

Whether you have a little or a lot, helping your child develop the skills, knowledge, attitudes and behaviours to manage money well is a key part of passing on generational wealth – just as much as passing down actual money is.

Talia Loderick is a money coach who helps people to understand and take control of their finances. Her website can be found here