Children To Be Taught How To Avoid Debt

Ed Balls the Schools Secretary, aims to halt the increase in the number of children who leave school financially illiterate. So children, some as young as 11, are to receive lessons on how to manage money, calculate rates of interest, and plan a pension.

According to research, two-thirds of adults have difficulty with basic financial language and are totally ignorant about investment opportunities. Figures suggest that in the UK, people lose more than 10 billion pounds a year after buying financial products that are not suitable for them, while at the same time, personal debt has risen to a record 1.325 trillion pounds.

Mr Balls has directed secondary schools to teach personal finance, career progression and enterprise as part of the National Curriculum inorder to improve pupils preparation for adult life. He argues that youngsters must be better-informed and learn to manage their money and finances effectively.

He said, "It is essential that we equip our kids with the financial skills they'll need as adults and get young people to think about their careers and how they intend to fulfil their ambitions."

We agree with him as money plays a central part in all our lives. As soon as possible, youngsters should learn how to make the most of their money and savings ready for when they start work. Schools therefore have a central role to play in encouraging teenagers to improve their chances of finding a successful career. They also need to understand about taking risks and generally develop a dynamic 'I can do' mentality.

As early as possible young people need to understand everyday money issues such as opening a bank account, buying a house and saving. It's generally about developing a sense of responsibility as UK citizens.

Governmant Ministers hope to use Child Trust Funds as the starting point for financial education. Later this year, every 5 year old entering school will have a fund for the first time. Every child born since September 1st, 2002, now has received a voucher for 250 pounds from the Government to kick-start their Trust Fund. Childern from poorer families get ouchers for 500 pounds.

Children will also learn about the role of personal budgeting, money management, personal savings and a range of financial products including pensions, interest rates, taxation, investment and trade. They'll also be taught about career progression and the attitudes and skills sought by employers. To top that off they'll be taught about business enterprise and how to manage risk.

And we're please to hear, the new secondary school curriculum will also include lessons in British values.

Article Source: http://articlebridge.com

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