The Tax Incentivised Savings Association (TISA), along with 16 savings and investment firms, has launched an initiative to bring financial education to primary school children. We asked three advisers what they thought of the approach ...
TISA's Kickstart Money initiative brought together 16 firms across the industry, which will invest £1m to offer financial education to almost 18,000 seven to 11-year-olds in England. The Money Advice Service (MAS) also awarded the scheme £80,000.
Spearheaded by Columbia Threadneedle global head of brand and marketing Rupert Pybus and Old Mutual Wealth responsible business director Jane Goodland, the initiative will be delivered by financial education charity MyBnk.
Its first Money Twist programme will focus on topics such as saving, budgeting, careers, borrowing and consumer and public finance.
Three advisers shared their views on how well primary financial education might prepare young people for financial decisions in later life ...
‘More practical than some options offered in schools'
IFS Wealth & Pensions director Alan Chan: "As a nation, we're quite far behind with financial education in schools compared with other countries, such as the US.
"The average person has very little idea about the financial world so it would be good if children did understand the options available to them. They would then be better equipped to make decisions as adults.
"This would certainly be more practical than some of the educational options currently offered to children in schools."
‘Will make it easier to understand financial principles later on'
Advies IFA Alex Reynolds: "It's important to start financial education as soon as possible. Children start learning already quite early on with pocket money.
"They see how money accumulates and decumulates but beginning with these simple ideas in schools will enable them to better understand more complex financial principles in later education.
"We are sorely lacking in financial education in the UK and it should arguably already be a small part of the curriculum. Just as basic cooking is compulsory in schools, basic knowledge of how to deal with money should really be included."
‘Teenage financial education is the immediate concern'
Hargreaves Lansdown head of retirement Tom McPhail: "This is definitely a good and interesting approach to financial education.
"My only concern, however, would be that there is more of a pressing need for this in secondary school, given the many teenagers about to leave school who lack basic financial knowledge.
"The need for this is arguably more pressing for this age group but it will still be great to see how this initiative works out."
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