Compulsory Consumer Finance Education Discussion

edited 24 November 2009 at 11:14PM in Student MoneySaving
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  • Also the kids should know about what the banks invest our money in, they may want to choose a bank with regards to world ethics as well as what they may get out of it.
  • My 8 year old has just started getting pocket money - performance related! He gets 10 spellings a week to learn. He gets £3 if all spellings are correct, 25p knocked off for each one he gets wrong. 1st lesson - you have to work for your money!
    He is starting to learn that he has finite resources. So - does he get a Simpsons magazine (£2) or save for a Lego model. He is just starting to understand the spend / save question.
    He is also learning to shop around - ie, "Mummy, I want some new pokemon cards - can we have a look if there are any on ebay, I can spend £4.00"
    In my opinion - kids need to learn about choices - what budget they have, what they want to spend it on, where to buy it from.
    Also - parents need to say no more often & explain why.

    user_offline.gif In answer to the above, I am not sure about rewarding and taking money for academic work. It may be that if the child tries really hard but doesn't do so well that they could feel put down. My ex used to pay our son for everything, when he came back home he would refuse to tidy his room etc. unless I paid him for it. But I can see where you are coming from.:o
  • I would like to see this delivered by experts and not teachers. As a debt adviser in the free advice sector I am horrified at the number of teachers who have passed through our service, and dread the thought of those teachers imparting their 'knowledge' to the next generation.. I think advisers who deal with finance all the time have a different perspective from that of teachers.
  • I love this. I think we spend far too much time blaming teachers instead of offering our experience, help & advise of living & working in the commercial world.
    Thanks, this echoes my post exactly and the project supporting our local schools and teachers :jpage 4 no:78.
  • sakayleigh wrote: »
    I went to High School in Australia and was lucky enough to be benefit from the school banking scheme. Our High School operated a savings scheme for the students. We had a passbook and were able to deposit and save money. I believe our schools should run a banking scheme for the pupils. Children need to learn the virtues of saving money but unfortunately many don't have accounts and don't save.

    Many, many years ago, when children's savings took the form of savings stamps, children could buy these through the school. I remember doing this at primary school. (It was a long time ago!)
  • It's fantastic that financial capability and economic well-being will now be compulsory aspects of our education system. Even though many schools have been building this into their enriched curriculum activities, there is always room for improvement! I am extremely fortunate to work for Young Enterprise (a business education charity) and this means working with schools, pupils and students to explore and understand personal finance management, their role in the economy and how businesses work (amongst other worthwhile learning). This kind of education needs to start at primary school - introducing our youngest learners to the difference between a need and a want, family budgeting, taxation and community services and how money moves. On this foundation, secondary school students will be able to explore their responsibilities as the taxpayers, employees, employers, savers, borrowers and investors of our future economy.
  • Some excellent comments made. I would like to share my personal view on this. It's simple; "If you can't afford to pay for it in cash, then you can't afford it!!" Don't be fooled by catch-phrases like "MUST-HAVES" etc, b'cos all that adverts do, is to convince us to buy things we don't need with money we don't have. Encourage people to be patient and rather to save, and then buy cash.... b'cos there's always a bargain to be had, after all, CASH IS KING!!!
  • I have always tried to teach my kids about money. A big thanks for your Teen guide.
    My son turns 18 next year and my biggest fear is that I know he will be bombarded by the banks, credit card companies and loan companies, to take out finance that he doesn't want or need, but the offer of thousands of pounds to youngster is very tempting. I can only hope that I've taught him well enough not to take everything on offer.

    Is there not a way to stop this from happening?

    Kids need to be warned that this will happen so that they can be prepared.
  • atypicalatypical Forumite
    1.3K Posts
    mandymad wrote: »
    my biggest fear is that I know he will be bombarded by the banks, credit card companies and loan companies, to take out finance that he doesn't want or need

    This won't happen for the most part. He would have to actively seek credit and even then with no income (I'm guessing) it's still difficult.

    The first real credit he'll have to manage will probably be an overdraft and a student credit card if he decides to take one out (though I don't see the purpose of them).
  • I have long wanted to teach children about money (and relationships) at school. The main points I would make are:
    • Money is not emotional, it doesn't care how you use it, but how you use it is often emotion-based. By taking the emotion out of money you are in a better position to manage it rather than have it manage you. (e.g. 'must have' purchases, 'depriving' your children of something, feeling better this minute but for only a minute... etc.)
    • Making the language of money much clearer- e.g. a credit card is mis-named, as is a debit card.
    • Explain how we receive aspirational messages from the world about us all the time; understanding that behind them is a world of commerce whose life blood is our cash.
    • Understanding the difference between a need and a want, and being able to make an informed decision about what our wayward emotions are demanding.
    • Simple budgeting - when you receive your pocket money, allowance, wages you need to take a look forward at what events are coming soon (birthdays, parties, raves, Christmas, holidays) and also what are your regular commitments to yourself and others (mobile phone credit, food, rent, gas, electric, council tax, car tax, petrol, lunch money, etc.). However much money you receive, you have already spent some of it because of what is already around the corner.
    • Explaining credit card interest by demonstrating that a pair of jeans purchased on a credit card for £X may have seemed reasonable but if you only pay the mimimum for 1 year, that same pair of jeans ends up costing you £XXX and you're not even wearing them anymore.
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