Justin Tomlinson MP with Carol Vorderman and Martin Lewis of MoneySavingExpert.com
Justin Tomlinson MP, Chair of the All Party Parliamentary Group (APPG) for Financial Education for Young People, today welcomed the launch of the Group's report on Financial Education and the Curriculum. The report follows an eight month, UK wide inquiry and recommends that the Government should promote the provision of high quality financial education in schools in England.
Around one in four economically active adults is functionally innumerate. Two-thirds of people in the UK feel too confused to make the right choices about theur money and more than a third say they don't have the right skills to properly manage their cash. A survey by the UK Payments Council has drawn out this notable lack of knowledge around the meaning of some of the most common financial terms, for example, only 36% of people understand that the term APR relates to payments. This lack of financial education has cost Brits nearly £250 million in charges and penalties alone, with almost a quarter having been hit by charges because they don't understand the terms and conditions of financial products, according to research from USwitch.com.
A survey carried out by the inquiry found that in schools across England, the existing provision of personal finance education is ad hoc, with only 45% of teachers reporting that they have ever taught the subject.
The report recommends that:
- Financial education should be compulsory in every school's curriculum and assessed.
- Every school should have a dedicated 'champion' to coordinate financial education drawn from the senior leadership team.
- Banks and businesses can play an important role, particularly the British Bankers Association.
- Primary schools should continue to teach financial education using a cross-curriculum approach, but teachers must be able to teach basic maths and money skills.
- Secondary schools should use a cross-curriculum approach grounded in maths and personal social health and economic (PSHE) education.
- All teaching materials should be quality marked by a trusted body.
Justin Tomlinson MP said "Young people are entering an increasingly complex financial world of store cards, mobile phone tariffs, credit agreements and financial marketing. It is important that young people are suitably equipped to make informed financial decisions.
"I am passionate that financial education is the best way to equip all young people with the relevant skills to make informed decisions and empower them as consumers. I look forward to the three hour debate we have secured on the issue in the House of Commons on Thursday where the recommendations of the eight month Inquiry can be discussed."
Carol Vorderman says: ‘"About half of 16 year olds fail their GCSE Maths. Of those who gain a Grade C, many still find it difficult to calculate percentages. It is time for the skills that everybody needs to juggle an ever complicated world are taught fully and properly through the Maths curriculum. At the moment, the young people who fail Maths are taught a watered down version of what the top 15% need: this includes levels of trigonometry and algebra, which they will never use again, if they ever get to understand it in the first place. They need the fundamentals of arithmetic and its applications as a priority. it's time for change."
Martin Lewis of MoneySavingExpert.com, whose e-petition has now had the magic 100,000 sign it, says: "For once, thankfully, we have a bunch of politicians who aren't pussy-footing around. They're actually using the C word – compulsory. We need compulsory financial education in our schools. Our nation is financially illiterate, for over 20 years we've educated our youth into debt when they go to university, but never about debt. Breaking this cycle will mean less mis-selling, fewer bad debts, better consumers and could save the public coffers a fortune."
Wendy van den Hende, Chief Executive of pfeg says: “Young people want to learn how to manage their money, and school is an excellent place for this to happen. Teachers clearly want it to be part of the curriculum, so that it is taken seriously and has the support it deserves to be taught effectively.”