MSE News: Personal finance education to be made compulsory

DarkConvict

This is a fantastic idea, and something i would like to see as well. I am fairly good with managing money, my problem is knowledge of tax codes, and how they affect you if you have multiple incomes. After 2 days research i understand it in great detail now, if i knew about it 18 months ago i wouldn't have received an underpayment of tax calculation.

There needs to be some under pinning principles,
1. If you can't afford it don't buy it
2. If you buy on credit make full payments not minimum payments
3. Plan for things to go wrong, allow a 5-10% budget on top for savings/problem
4. Don't dig your head in the sand, free advice is available.

bylromarha

As per usual, the government is stepping in to do the parent's job.

My kids are 5 and 3. They spot and collect coupons, the 5 yr old knows his coins and can tell me which is more. The 3 yr old knows that we have to wait to buy somethings as we need to collect lots of money together to buy. They both come to Tesco with me and help compare brands and products for value. Their understanding will grow as they do as it's part of the life skills it is my job as a parent to give them.

Some elements of finance can be taught in the classroom, but needs to be practiced and reinforced at home to be of any use.

CLAPTON

cw18 wrote: »

And about time too :T



I'll start this comment by admitting I've not been in this position myself (and my elder two didn't go to Uni, with my youngest looking at starting next academic year), so don't have any first hand experience and my response is purely based on conversations with friends who have......

It seems there is a huge expense on books etc. in the first month or two, so perhaps it would need to be split with a larger payment at the start of the year which is followed by a smaller payment each month

Other than that, I do think this would be a brilliant idea. But I doubt it would ever happen due to all the additional administration costs

I agree with you here... I was just keeping it simple.
In fact, the money I gave my own offfspring was in 9 installments with the first one larger to allow for intial year costs.. not just books but club subs etc.

CLAPTON

Absinthe_Fairy wrote: »

That's a good idea in one sense - but students in halls of residence have to pay accommodation fees in three lump sums (normally) - so need 3 large chunks of money in order to do this.

I suspect that they do this because the grant is paid in three installments.
I'm pretty sure that if the grant was monthly the hall os residence would change too.

People in private accommodation usually pay monthly.

mumwiv3

Whilst I agree that teaching personal finance in school is a good way forward and should be considered as a life skill, there are times when students are let down dreadfully and all their planning is thwarted. My eldest took a year between leaving college and beginning Uni. He got a year's money behind him only to find that his Uni had screwed up all over 18's accommodation. He then found himself in a predicament of no halls of residence and now paying rent in a private property (more expensive) and it was unfurnished. We had only two weeks to set up home for him (very expensive). He was charity shops' best customer! Then there was the fiasco (still continuing for 2 of his house sharers) with the Student Loans Company.

So, although students get a bad press (such as sponges; lay abouts etc) I can speak for a good proportion when I say that this year's intake has been a very stressed and worried cohort.

Haxo

I am in my third year of University. My parents taught me well - they've never had much money and they always paid the essentials first (mortgage etc). I like to think I am moneysavvy as a result.

But, many of my friends haven't got a clue. Some of the ones at University rely on handouts from their parents once they have too swiftly used up their student loans (and overdrafts). The ones that went straight from school/college to work seem even worse - most still live with their parents paying little or no rent and spend money like water (and then get cars etc on finance). I find it hard to understand where all their money has gone.

Had personal finance been in the national curriculum years ago, I like to think that they would have more idea about prioritising essentials and not buying what they can't afford.

baby_boomer

Martin should teach children that if they choose to become a student then it will take many years to pay off their £35K debts, assuming they get employment.

But I don't think that's what Ed Balls wants him to say.

Lokolo

baby_boomer wrote: »

Martin should teach children that if they choose to become a student then it will take many years to pay off their £35K debts, assuming they get employment.

But I don't think that's what Ed Balls wants him to say.

Where are you pulling this £35k from?

Hullabaloo27

It's a great start but can we also ensure videos such as 'Where does money come from' and 'Money As Debt' are included within said curriculum? It's absolutely scandalous that this wasn't a large part of our education to begin with.

It's almost as if the powers that be don't want us to know or something. :rolleyes:

lorietta

I think this is a great idea, my mum has always been good at helping me budget and how to deal with banks and all that kind of thing, but she worked for the post office, and now works doing accounts, so she is probably more clued up on these things than most people.

I remember having a day when some representatives from banks came in and talked to us about budgeting and the best student acounts. This could have been amazing but most of it was spent with the banks actively encouraging people to get overdrafts and credit cards.

Of course, this won't solve the problem of people being forced to get into debt because student finance messes up their payments.