Should money matters be taught in school?

Ingsy

Hello. Long time reader, few time poster here.

Having read a lot of threads on the MSE forums, one thing seems to keep repeating itself - the lack of knowledge of borrowers as to what their actions could lead to. People my age (27) have perhaps grown up with credit cards etc and see credit as eing intrinsic to their way of life.

Having bought a new build (it was 4 years old when we bought it) 2 bed flat 4 years ago I'm fairly sure I'm now in NE, even though I've been on a repayment mortage since day 1. No credit cards or other loans though mean that I'm in a lot better position than a vast number of people my age - I put this down to being brought up to save for stuff before buying it. I now hate to feel in debt to people, which I'm pleased about, in a way.

Some people blame the borrowers (they borrowed to much money! They were greedy! etc) some blame the lenders (every day new offers of credit cards come through! etc).

So, here are the questions:

1. If you had the power, would you introduce teaching money management in schools?
2. If yes, at what age and, more importantly, how exactly would you do it?

Cleaver

I'm a good few years out of school, so maybe some do have finance lessons. But I think it would be a really positive step to introduce a regular lesson about personal finance. Mortgages, personal budgets, loans, the repecussions of poor financial management, pensions etc.

A perfect way of getting it in to the curriculum would be to substitute it for all religious education which has no place in a modern educational establishment anyway.

Really2

Ingsy wrote: »

Hello. Long time reader, few time poster here.

Having read a lot of threads on the MSE forums, one thing seems to keep repeating itself - the lack of knowledge of borrowers as to what their actions could lead to. People my age (27) have perhaps grown up with credit cards etc and see credit as eing intrinsic to their way of life.

Having bought a new build (it was 4 years old when we bought it) 2 bed flat 4 years ago I'm fairly sure I'm now in NE, even though I've been on a repayment mortage since day 1. No credit cards or other loans though mean that I'm in a lot better position than a vast number of people my age - I put this down to being brought up to save for stuff before buying it. I now hate to feel in debt to people, which I'm pleased about, in a way.

Some people blame the borrowers (they borrowed to much money! They were greedy! etc) some blame the lenders (every day new offers of credit cards come through! etc).

So, here are the questions:

1. If you had the power, would you introduce teaching money management in schools?
2. If yes, at what age and, more importantly, how exactly would you do it?

1. Yes, and general finance how loans work etc. Even some business finance accounting etc.
2. Secondary School. (all the younger ones let them enjoy childhood) I would do it by having a proper business person/financial teacher (ex Director or senior manager) not some text book business person but knowing education they would use a text book person thus making it fairly pointless.
I remember my business studys teacher and thinking a) you are useless and b) if you knew anything about running a business why don't you do it.:)

vivatifosi

Yes, yes, yes...

I don't think it has to be a big part of the curriculum, just one of those special days that you look forward to. If you have plenty of practical exercises and make it fun, then one day will stick more in the mind of a child than any amount of dry theory.

When I was five I used to take my lunch money to school in a matchbox. You could have lessons about counting money and sweets and piggy banks.

When I was ten I got my first pocket money. You could make lessons at that age about saving pocket money to buy bigger toys or blowing it all on cheap crap and sweets (always my favourite strategy back then).

When I was 14 and got my first little job and got interested in boys, I would have wanted to know about budgeting, the cost of going out, having a savings account. You should also be learning about compound interest in your maths class.

By the time you are 15-16 you should understand about the big world outside home. How much it costs when you (eventually leave it), what the big bills are that you have to buy and how bank accounts really work. You should also learn about APR/AERs etc.

That's just my opinion.

Though now it would probably be against H&S rules to carry your lunch money in a matchbox, so my whole idea falls down from the get go...

Cannon_Fodder

1. Yes.
2. Primary school.

How? Basic maths would be a start. How to balance your current account every month, at Secondary school.

Convey the fact that every penny of fees/interest/charges that you incur, whether deliberately or accidentally, has to be repaid, and until it is, is a penny spent in its own right.

The problem with the education route, is that we have a population of 50 million (roughly) over school age, of whom substantial chunks are clueless where money is concerned.

An alternative (or side-by-side option) would be to curtail personal lending/borrowing, across the board.

I would prohibit lenders from going more than 10% above Base Rate. Including the despicable store cards.

Cat695

Surely by adding something into the maths lessons would help kids to see what its like in real life.

Kez100

yes

I have been vocal on this for years.

carolt

Great idea OP.

cleaver, I thanked your post before reading to the end. I think in our increasingly multicultural world, where religion and politics are ever more intertwined, knowing about religions is essential and anyone without that knowledge will be at a distinct disadvantage.

Re financial education - great idea. Could introduce basics at primary school - eg my kids are taught about what the coins are called, how to calculate change, but could handle more, I'm sure. Applying basic maths skills to real-life decisions/financial calculations eg working out which is the best buy! or something, as this site does, would be helpful.

I grew up with a family which happily discussed money, and my big bro took me, aged 14, to open my first bank account, show me how to use those new fangled (at the time) cash machines, when I panicked and lost my card in one! etc.

But for those whose families know less/discuss less/explain less, then yes.

And frankly, there's absolutely loads I didn't know till recently when I came on MSE - been a great learning curve.

Should be compulsory! Especially where house prices are concerned!

chucky

financial intelligence is missing in society today

Cat695

Its amazing we're even having this thread as its should be one of the main things taught at school....people shouldn't have to campaign for things like this.

Cleaver

carolt wrote: »

Great idea OP.

cleaver, I thanked your post before reading to the end. I think in our increasingly multicultural world, where religion and politics are ever more intertwined, knowing about religions is essential and anyone without that knowledge will be at a distinct disadvantage.

My personal opinion is that myth and fairytale shouldn't be taught in mainstream schools. Of course, you're correct that religion is still prevelant in the world and one needs to be vaguely knowledgable about the subject so you can be respectful towards others and understand religion's place in society. But in the 21st century I think we should be striving to evolve our ideas somewhat and ensure that religon is not given such an elevated presence in modern society. A couple of hours at home being taught by parents on the different religions should be more than enough - do we really need 12 years of religious education throughout our eductaion anymore?

Of course, if you want to base your child's education around a faith or belief then there are plently of schools available to you out there that will provide that service.