In a new report from prepaid credit card provider icount indicated that the majority of adults (in the UK) think that children should be taught the value and responsibility of money from the age of 5 – however – the official lessons on personal finance starts at age 11.
The importance of financial education
Financial education is now part of the curriculum for all high schools in the UK. This means that kids get a dedicated syllabus, focused on finance and personal financial management.
From learning about interest rates, credit cards and the dangers of debt – to mortgages and loans, kids are becoming better equipped to manage their own finances from age 11.
The main aim of teaching children about money at school is to ensure they are able to make smart financial decisions when it becomes important later in life.
Learning the value of money in a ‘cashless’ society
There are so many financial service products on the market, which means that it is becoming increasingly harder for young people to understand which is best for the.
Since financial education became part of the national curriculum in September 2014, the government hope that children have a much clearer idea of how to handle their finances.
Each child from September 2014 will have received some form of money lessons.
Teaching very young children about money
The icount research demonstrates that just one in ten parents agree that age 11 is early enough to learn the value of money.
Financial education starts at home
If you feel it is important, there are some great ways to teach kids about money at home – before they even get to school age.
One easy way to help them learn about budgeting is to give them a calculator during the weekly food shop, and everything that goes into the basket must be accounted for. Give them a maximum budget and if it goes over that, tell them to let you know.
For older children, another great way is a prepaid card. The majority of accounts some with a debit card, so you can load money onto the cards and let them figure their budget out.