IFAJun 18 2018

Simplybiz's academy to educate teenagers about finance

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Simplybiz's academy to educate teenagers about finance

The New Model Business Academy (NMBA) has launched a free financial education initiative, which aims to improve financial competency among young people.  

The programme, which is sponsored by M&G, Zurich, Vanguard, BMO Global Asset Management and Brand Financial Training, will be delivered by financial advisers who have contacts at schools, colleges and other youth groups in their areas.

The scheme targets those aged between 16 and 18-years. 

The launch of this initiative follows research by NMBA last year that showed 97 per cent of advisers would be interested in becoming involved in financial education in schools, and almost 200 have already registered their interest in taking part.  

The campaign provides resources, which include ways in which to make contact with schools, and the 'Young Person's Guide to Money'.

This is a publication designed to give young people a basic understanding of financial fundamentals that will assist them in financial decision making throughout their lives. 

The guide covers a wide range of areas including earnings, taxation, savings, budgeting and borrowing in plain English, and includes a comprehensive glossary of terms. 

Tom Hegarty, managing director of NMBA, said: "One only has to look at the amount of debt and insufficient protection and savings provisions in the UK to understand the long-term issues that a lack of financial competency can cause, both to individuals and the economy as a whole. 

"Despite the inclusion of financial capability in the National Curriculum, schools continue to experience difficulty allocating time and space in the curriculum to deliver financial education.

"We believe advisers are perfectly placed to pick up the mantle of delivering this education, given their unique understanding which couples not only the technical aspects of financial advice, but also how to consider one's circumstances holistically.

"We are very proud to be launching this programme to support young people and believe that better education about financial products and planning could make significant inroads into proactively tackling these issues, and ensuring a brighter financial future for the next generation."

The news was welcomed by Jon Bean, chartered financial planner at Newton Aycliffe-based Eldon Financial Planning.

He said: "I feel it is important to inspire and educate the future generation, which is why I am a big supporter of such projects.

"We are always going into schools to show them what we do and to teach young people about personal finance, savings and how to budget and run a household.

"I think it is worrying the amount of young adults who go to university or enter adult life that don't have a good grasp of personal finance. This can lead to them making poor decision, because they are not armed with all the right information.

"We need to help young people become better prepared, and the best way for that is through education."

The academy's plans come after the Personal Finance Society announced last month that it is set to launch a nationwide financial education programme in schools and colleges.

The ‘Education Champions’ initiative is to provide important and complementary financial education for the next generation and it is hoped that it will ultimately become a key part of the national curriculum.

The scheme aims to establishing an active link with every secondary school and college of further education in the country.