Financial literacy has always been an interesting subject. Should it become part of the National Curriculum where schools educate in the classroom? Or is it down to parents to show a child how to budget and save?
In recent years, banks began offering ways to help support financial literacy in both schools and at home. These include bank accounts, saving plans and education resources.
Should schools be teaching financial literacy?
In a study released by the pension provider Portafina, 68% of Brits thought that being taught financial education at school would have improved their financial position later in life. 9 in 10 parents believe it is the school’s responsibility to provide financial education.
There are a lot of reasons why it should. But given the technological advancements in the payments industry, would it mean financial literacy will need to be updated and reviewed regularly? And will this kind of information be available to teachers?
In fact, a survey by the Money Advice Service revealed that 88% of teachers do not have the training or specific qualifications needed to teach financial education. Teachers themselves said that the top barriers to delivering financial literacy in school is lack of time in timetables, lack of flexibility in the curriculum, the cost of delivery and fear of not having the necessary skills or knowledge.
Resources for financial literacy at home…
There are many tools now available from blogs, apps, and ring-fenced bank cards. Not to mention, banks are now providing resources to support financial education or even good ol’ fashioned cash…
There are several subscription-based Pocket Money options, that also offer children a bank card so they can ‘buy’ their own items. These include:
- Rooster Money
- Starling Kite
- Revolut Junior
These offer cards with a certain number of cash loads on it (some are more generous than others) and saving goals. Some even allow you to set tasks and chores! Therefore, this offers the opportunity to learn how to manage money and how to earn it through effort.
There are also some free apps (without the bank card attached). These include:
- Rooster Money (non-Pro version)
When considering any app-based scheme, definitely do your research. We found a handy article from Money to the Masses that might be worth a look before you make any decisions.
The banks are also looking at supporting financial education…
Working with schools, NatWest is offering free financial education programmes via National Schools Partnership. Newcomers to the financial sector, Revolut and Starling, are offering ways to promote financial literacy through their sub-based kids accounts Junior and Kite that’s linked to a parental account. Even The Bank Of England has a section on financial education that offers numerous free teaching and home-schooling resources.
Additionally, there are some other educational initiatives that look more at how to budget, save and invest. With programmes such as RedSTART and books and games by Rob Gardner of St James Place. These can teach you about saving money and becoming more aware of how to budget and spend wisely and can be introduced at a relatively young age.
You can always rely on a good ol’ piggy bank! Doesn’t matter what era we’re in, children will always enjoy the action of putting their own coins into a piggy bank. The beauty of cash and coins is that it’s visible, you can hold it, count it, and deposit it yourself.
Financial literacy is important, even more so as technology continues to change. Children need to be payment savvy. This should include online security, budgeting, balancing the books and even making an investment. They should understand how to manage risk as well.
Gone are the days where financial ignorance is allowed… the children of today are tech savvy and street smart. So why not be financially smart and savvy as well… a real-life skill that will only pay dividends!
Check out our blog ‘Why is payment choice a necessity for COVID19 recovery?‘.