Growing up, I didn’t learn a thing about money at school. At a young age, I remember learning about percentages in maths lessons and applying that to hypothetical shopping trips (if something was 20% off etc), but we learnt scarily little about how to save money.

What a paycheck looks like, taxes, mortgages - the list goes on. Luckily, my parents included me in a lot of financial discussions surrounding spending money, saving money, getting my first bank account and general conversations around the topic. I had a real interest in the world of money too, but without the combination of those two things, I fear I would be really stuck because the financial education system didn’t help me out at all. 

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What Does The Research Say? 

According to new research from Natwest’s Thrive programme, over a fifth of young people aged 16-21 say that they have never discussed money at home. This has majorly impacted the confidence of young people when it comes to dealing with money and in fact, 81% of those involved in the survey believe they would be more financially confident if they had had those conversations growing up. This shows the effect of the lack of attention given to financial literacy with regards to young people. In addition, 89% of the young people agreed that children should receive some financial education before they reach 16. 

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Why Is Financial Education Important?

The recent study aforementioned has made it clear that financial education is crucial. Learning about money at a young age can help to mould a person’s relationship with money so that it doesn’t become a scary, taboo subject. Everyone has a different upbringing and so some families may talk about finances quite casually whereas others may not feel that it’s a necessary conversation to have or avoid it completely.

For this reason, all children will have a different level of knowledge and so it’s vital that they are educated properly. Children should be given the opportunity to discuss money management, saving money, bank accounts and general financial terms to improve their confidence. A combination of formal education and involvement from parents and guardians can then transform the general attitude towards finances to allow young people to thrive independently. 

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What Should Be Taught?

If you are currently at school or maybe you have children of school age and you would like to start getting the money conversations flowing, here are some topics that could help. 

Start by bringing up the idea of money, demonstrating examples when you go shopping or talking about some things that your money goes towards. 

• The value of money - what a certain amount can get you, what deals are best on the shelves
• How to save up - if there is something your child wants, suggest the idea of saving pocket money and how long it could take to afford something
• Interest rates - once you’ve mastered the idea of bank accounts then narrow down which could be best and why