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MSE News: Compulsory financial education moves one step closer
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Former_MSE_Helen
Posts: 2,382 Forumite
"Secondary school students could be taught financial education as part of the national curriculum, under new proposals..."
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Compulsory financial education moves one step closer

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Compulsory financial education moves one step closer

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Although I am now a pensioner I had good financial education at school . This has helped me all my life and I am now a volunteer advisor at CAB .This is such an important skill . Well done !0
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Great news. Well done to all who have pushed so hard for this.
Arise, Sir Lewis.0 -
People who cannot pass the exams should not be allowed to have credit. They will be allowed to have basic bank accounts and debit cards. They should only be allowed to save money in simple deposit accounts and National Savings. They can also join Company Pensions.
A National Financial Licensing Authority similar to the DVLA for drivers should be set up. As this is essentially a credit reference agency, it is possible to sub-contract it to Experian.
They issue Personal Financial License, with categories, so that you can invest in tracker funds, but not buy and sell options, for example.
As the majority of the existing population are "incompetent" persons by virtue of having no Personal Financial License, we need to allow a transition period. Outstanding car loans, mortages etc. have to be allowed to continue.
We should give people say three years to study and pass the exams. During this period, we encourage the opening of financial adviser services, staffed by "qualified" people, who can arrange financial products for people who cannot pass the exams. These firms will pay fines for inappropriate recommendation and arrangements; directors and advisers will go to jail in serious cases.
There will have to be charities that cater for the needs of the illiterate and inumerate, and the poor who cannot afford to go to night classes.
Like the DVLA, there will be huge amount of compliance jobs everywhere. Don't forget refresher course! With constant changes in regulation, e.g. the pension system, there is endless amount of courses to do. I expect a you need to pass the exam every ten years to renew your license.0 -
People who cannot pass the exams should not be allowed to have credit
And we live in a democracy?
A lot of people that get in to trouble with credit know exactly what they are doing. Exams would make no difference, people would still get in to trouble, others would take on too much, just because they can.
Of course, those that give the credit ought to go back to school too, and the law should be changed to allow only 15% of disposable income to be borrowed by any consumer.
That would sort it!0 -
Excellent news! Now we have to hope this will be taught in an engaging way so that young people will take it seriously.0
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As a school business manager and qualified accountant, this is very good news!
I would be concerned about trying to teach debt and other financial instruments when we struggle to get some students through their GSCE Maths - perhaps rather than this being included within Citizenship curriculum it should be taught as part of Maths giving students a feel for how Maths is important in the real word!
I would also like to see real world examples being used in personal budgeting for things like utilities including council tax etc. These are just as important given how complicated some companies make their bills!0 -
fishybusiness wrote: »And we live in a democracy?
A lot of people that get in to trouble with credit know exactly what they are doing. Exams would make no difference, people would still get in to trouble, others would take on too much, just because they can.
Of course, those that give the credit ought to go back to school too, and the law should be changed to allow only 15% of disposable income to be borrowed by any consumer.
That would sort it!
Do you know what a democracy is?
And I'm not exactly sure why you think it's undemocratic to only allow people to borrow if they show they understand what they're borrowing (a quick browse on the forums here will show fully grown adults who aren't even able to operate a credit card correctly) but it's not undemocratic to restrict how much people can borrow. Using your 15% figure, as a student I'd personally only be allowed to borrow something ridiculous like £500, yet I'm currently managing combined credit limits of something like £15k perfectly well (and not only not paying a penny out in interest in charges, but am earning around £30-35 a month from it).
As to this topic, while I don't think the "public have been clamouring" for this as Martin claims (100,000 signatures from a population of 65,000,000 doesn't really tally with that!), it can't be a bad thing. I personally doubt it will solve anything but it could help out a couple of people here and there.0 -
I personally doubt it will solve anything but it could help out a couple of people here and there.
Which is where I am atDo you know what a democracy is?
Yes btw.
I guess my point is twofold, first being that teaching financial concepts is much like teaching non aggressive behaviour, people (adults and children), will only listen and act on information when they consider it valid. Be it social class, friendships, partners, parents or whatever influences people have, IMO those influences will be much stronger than practical teachings at school.
Which brings me on to the passing exams to be allowed credit. Many people, perhaps the majority could potentially pass the exams, and be influenced by their world, and so be open to credit misuse.I'd personally only be allowed to borrow something ridiculous like £500
Is it so ridiculous? Culturally we think not, and perhaps that is the beginning of the problem.I'm currently managing combined credit limits of something like £15k perfectly well (and not only not paying a penny out in interest in charges, but am earning around £30-35 a month from it).
You must tell me your secret, for as a student myself the world will not give my unblemished record 15k of credit0 -
fishybusiness wrote: »You must tell me your secret, for as a student myself the world will not give my unblemished record 15k of credit
I don't know the secret but just before I graduated I had £12K of credit, just used knowledge from MSE (and a bit of savings from the parents at the start).0 -
This is excellent news. Many schools already do this of course, particularly at KS4, but it if brilliant that it is now on the National Curriculum from KS3.
One point though, Academies and free schools do not need to follow ANY of the National Curriculum if they don't want to.
I can't imagine any school would opt of out the NC as a whole, but they might "cherry pick" aspects of it. So it isn't actually compulsory even though it is in the National Curriculum.LBM:1/1/12Debts @ LBM:£43,546 :eek: Debts now: £9,486 :cool: 78% PAIDFound YNAB 1/2/14 - the best thing EVER!0
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