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Financial education for youth is vital, says Brown Advisory

Financial education for youth is vital, says Brown Advisory

Saving as early and as regularly as possible is vital but too many young workers do not understand the value of such a plan, a partner for Brown Advisory has said.

Simon Peck, partner for the London-headquartered private client investment firm, said: "When it comes to savings and investment, one of the key elements young people often do not appreciate is the power of compounding."

Brown Advisory, which was founded in 1993 within US firm Alex Brown & Sons, runs a Money Matters Course, aimed at young people.

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Mr Peck said: "On our Money Matters Course, aimed primarily at under 25s, we emphasise that saving regularly and as early as possible in a career will contribute significantly towards financial security in later life."

Martin Tilley, director of technical services for self-invested personal pension provider Dentons, has spoken at this course on the subject of pensions.

He told FTAdviser: "Brown Advisory invited me to talk for an hour on the basics of pensions. It was clear from the way in which these young people were taking notes that this was something they had never been told about before.

"They didn't even realise the value of pensions as part of a remuneration package.

"Yes, it was just the basics about what pensions are and what mortality is, but it is important to get people thinking about their finances from an early age."

His comments came after former Jelf Employee Benefits head Jo Thresher set up a firm Better With Money, which will provide face-to-face and web-based financial wellness workshops to UK employees.