Financial knowledge and awareness can affect countless aspects of our lives, from being able to budget for our weekly food shop and pay bills, to meeting our mortgage payments and having enough money to live off during retirement.
So why are so few people receiving proper guidance and education on how to manage their finances? And what lasting impact can this have on a person?
According to research, just over a 1/3rd of children and young people have been given some form of financial education at school, while nearly half of all adults feel they would be in a better position to manage their money now if they had been taught basic skills, such as household budgeting, at school or college.
But as the cost-of-living crisis bites, many people feel this lack of financial training and guidance has had a very real negative impact on their lives. For instance, two-thirds of young people believe their lack of financial education has led to them falling into debt.
In addition, studies have found that more than two-thirds of 18 to 34-year-olds who’ve had financial problems believe this was caused partly by a lack of money management skills.
That clearly shows that people not only recognise the positive impact that proper financial education can have but also yearn for it and would find it valuable.
Financial education was actually added to the national curriculum in secondary schools eight years ago, but research has found that the impact of this has been limited.
In fact, two-thirds of teachers believe students have a poor level of financial understanding when they leave school. As a result, calls have been made for lessons in money management to be added to the primary school curriculum, so young people can get to grips with financial literacy much earlier on.
This, they believe, is crucial because children’s experiences of money will be very different by the time they start secondary school, depending on their socio-economic background.
Furthermore, it pointed out that the move to a cashless society has also led to children having fewer opportunities to learn how to manage money properly.
Ultimately, this leads to millions of children and adults alike not feeling confident handling their money day-to-day and going through life lacking the knowledge, skills and information to make important financial decisions.
As the argument over the provision of financial education continues, we remember that our professional advisers are available to provide guidance and support, so you and your children can take the steps you need to achieve your financial and lifestyle goals.
If you have any questions about managing your money, please don’t hesitate to get in touch with us.