Financial education is something that many feel should be a staple of the national curriculum. Many parents feel that their children are currently leaving school at the age of 16 or 18 with very little knowledge of finance or money management.
When considering the inclusion of financial education within the curriculum the government toyed with a number of ideas. Some felt that it should be covered off within Mathematics; others felt it should be a module within business studies or economics however some still felt that the only effective way would be to commit a few hours per week to a specialist subject known as ‘financial education’.
With this in mind many are asking the question; what should be included within the curriculum? What would offer genuine value to students and help them when making important financial decisions in the future? Throughout this article we are going to discuss 3 topics that we think should be included:
1. Budgeting and Money Management
We think budgeting and managing money should be at the top of the curriculum. It has been in the news recently that more and more young adults are getting into trouble with short term credit sources like payday loans due to ill-managed finances; this simply reinforces that worries that many have regarding a lack of financial education.
Firstly, students could be taught how to create a budget including splitting their income and outgoings and calculating their disposable income. Tips could then be offered on how to increase their disposable income by making cutbacks and saving money. Emphasis could be placed upon the importance of living within your means, setting financial goals and the dangers of overspending.
2. Loans and Mortgages
Within this topic teachers could explain the different types of loans available and where they are available from. Popular loan and mortgage related jargon such as APR, interest and repayments could be broken down to make it understandable. Credit history could also be included within this topic, showing case studies of the effects of failing to repay loans and the importance of having a good credit score when applying for loans, mortgages or credit cards.
Although it may be a number of years before students are looking to apply for mortgages we think it’s important they are taught the basics. Sub-topics could include where you get the mortgages from, deposits, repayments and remortgaging. Special emphasis could be placed upon schemes that designed to help young adults get on the property ladder such as Help-to-Buy.
3. Saving and Investing
The final topic that we think should make it onto the curriculum is saving and investing. It is inevitable that at some point students will find themselves with surplus cash and it is therefore important that they know what to do with it.
Throughout this topic, students could be taught about savings accounts and the different types of accounts available such as fixed rate bonds, instant access accounts and ISAs. Within this topic students could also learn about emergency funds and the importance of having one to cover unexpected expenses.
Although it is likely that some types of investing (such as stocks and shares) will be covered off within business and economic studies, we believe it’s worth cross referencing it within the financial studies curriculum. Along with stocks and shares students could learn about investing in property, technology and gold.
If financial education does make it onto the curriculum then making it fun for students is very important. The last thing we want is for students to walk out of the lessons feeling negative about the future of their finances. We believe that the subject should be very hands-on with frequent use of fake money to illustrate the various topics. What would you include within the financial education curriculum? Let us know by commenting below.
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