Government inquiry into financial education receives 'warm welcome'
A government inquiry to improve financial education across all age groups has been welcomed by the industry.
This week, the government’s education committee announced it was launching an inquiry on how to establish financial education more strongly into the curriculum.
The subject has been part of the National Curriculum for council-run secondary schools since 2014, but academies and free schools can opt out of teaching it.
The inquiry comes after recent campaigns for financial education to be introduced as a compulsory part of the primary curriculum and for more content across the board to be compulsory.
The cross-party committee is expected to explore reasons why the subject is often overlooked and how well schools and teachers are supported to deliver it.
Robin Walker, committee chairperson and MP, said: “With families and young people continuing to feel cost-of-living pressures, the case for equipping children of all backgrounds with the life skills and knowledge to help manage their money feels as strong and timely as ever. In surveys of young people, financial education is frequently identified as something that they want more of.
“The committee is also very aware of the strain many teachers and school leaders are under and is reluctant to place extra demands on their time.”
Vicki Foster, director of responsible business at St. James’s Place said the firm "warmly welcomes" the inquiry.
She said: “St. James’s Place warmly welcomes the education committee’s inquiry into strengthening financial education.
"As the largest provider of financial advice, we see the benefit of people making informed decisions with their money, and the damage to society of low levels of financial literacy. We are also passionate about creating a positive impact through committing to help improve financial education for young people.
“We believe there is much more that can be done in this space, and the industry, and policymakers must work together to help improve the financial literacy of the younger generation. We look forward to being a part of this change, to supporting initiatives like this inquiry, and working with others to find solutions.”
A vital time
Meanwhile, the Centre for Financial Capability said the inquiry comes at a vital time for today’s children who are facing the aftermath of the pandemic coupled with the cost of living crisis.
Stewart Perry, director of the Centre for Financial Capability, said: “We are delighted that the committee is examining how financial education provision can be strengthened in the UK and specifically, whether this provision should be extended to primary-aged children, which is exactly what The Centre has been campaigning for since its launch in 2021.
"After all, kids’ attitudes to money are formed around age seven so we need to be speaking to them then.
“In the same way we would not encourage our children to ride bikes or jump in swimming pools without necessary lessons, we need to make sure children have the skills and confidence to deal with money matters as they grow up.”
Katja Oakley-Bell, personal finance expert at Quilter said teaching money skills from an early age is key and making it compulsory would ensure all children get the same start.
She said: “It’s well known that learning gets harder as we get older and with this in mind, we need to teach important life skills to children at an early age, and that includes money skills.
“With the cost-of-living crisis still impacting people’s day-to-day lives and inflation eroding people’s money, financial skills are more important than ever. And they are even more important as we transition to a cashless society where just a tap of your card or phone can fast deplete your wages.
“Teaching financial education in primary school might seem a little extreme, but research has shown that children as young as age seven to eleven can learn good money behaviours and gain skills like budgeting and deferred gratification."
The committee has launched a call for evidence and is accepting submissions until December 15.
MPs want to hear from a range of sources, but particularly teachers, pupils, and school administrators.
It wants views on a range of topics, including what young people should be taught about money, where financial education should sit within the secondary school curriculum and whether it should be extended to primary aged children.
tara.o'connor@ft.com
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