In January 2011, the then-education secretary, Michael Gove, announced a review of the national curriculum, with a revised programme of study subsequently introduced in September 2014.
A key development was the inclusion of financial literacy lessons. From the age of 11 to 14, pupils are now taught the functions and uses of money, the importance and practice of budgeting, and managing risk. From the age of 14 to 16 this progresses to income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.
However, simply introducing new subjects into the curriculum could itself create issues, especially as, in many cases, teachers lack the required expertise. Evidence suggests teachers are in agreement with this.
In September 2016, The Money Charity produced a damning report titled Financial education in schools: how to fix two lost years. The report found that although nine out of 10 schools were offering some form of financial education, just under two thirds described it as either somewhat or very ineffective. Furthermore, none described it as very effective.
The debate also extends to the age at which education should be provided. “The problem is further compounded by the fact that our money-saving habits are formed by the age of seven,” says Mr Gardner, who suggests that children should begin to learn about financial matters much earlier if it is to be effective.
“We’re one of the few countries in Europe that doesn’t have financial education on our primary school syllabus,” he adds.
Cash-22 situation
It is important to note that millennials are not alone in lacking financial savvy. An inadequate understanding of long-term investment strategies is apparent among all age groups, according to data compiled in BlackRock’s Global Investor Post Survey.
Importantly, the study identifies that investors who have received advice not only experienced increased confidence in the prospect of achieving financial goals, but also garnered a greater understanding of the necessary risk required.
Of those surveyed, 49 per cent of people who had been advised were willing to take higher risks to obtain higher returns, showing an appreciation for the concept of risk versus reward. In contrast, of those not advised, a mere 18 per cent agreed with this statement, highlighting a worrying lack of knowledge regarding basic investment principles.
However, since the RDR, a number of people appear to be shunning advice and undertaking financial matters themselves, whether knowledgeable or not.
Jeremy Roberts, managing director, head of UK retail sales at BlackRock, says that many are fearful of riskier assets such as equities, with 61 per cent of millennials relating investment to gambling, and 46 per cent perceiving investing as exclusive for rich people.
