Compulsory Consumer Finance Education Discussion

edited 24 November 2009 at 11:14PM in Student Money Saving
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  • I think it would be good to incorporate pensions into careers advice.
    The difference between the types of pensions available and to consider this when looking for employment as it is actually a significant part of your earnings over your working life which is blended into the back ground and not really considered by many till they settle down and have a family/future to worry about.
    Also discuss different careers with different pension periods i.e. police can (or certainly could) retire after 30 years service with full pension, which could be around age 50 whereas other schemes require 40 or more years and will not pay out till age 65.
    If I had known about these things at a younger age then the police would have seemed like a good career based on the retirement age, although I probably would not have understood this concept at a younger age!?
  • I have a young in-debt employee who calls store cards "The Devils Work"! They are easy to get and harder to get rid of and soooooo tempting for young people. Every time you go to pay, you are offered a card with tempting offers of 10% off if you sign up today. I'm not saying don't get them (actually I am!) but young people do need to be made aware of the pitfalls.
  • As a teacher, I agree with all those of you who think this is a subject that should be taught in schools. Children are very interested in money but need guidance on how to think about it and on how to make the right choices. Being moneywise is a transferrable life-skill. Also, some parents may learn something by helping children with their homework!
  • SneezySneezy Forumite
    570 Posts
    How to budget properly when you get your first month's pay packet! I was 19 and had never been let loose with more than 150 let alone 750!

    That listening to parents is a good thing, when i started working my dad told me to set up a pension and put a little bit away (even just 20-30) each month to have some saving when i was older! (did i listen? no, do i regret it? yes!)
    Using my phone to post - apologies in advance for any typos
  • misterfishmisterfish Forumite
    91 Posts
    Part of the Furniture 10 Posts Combo Breaker
    tracey2412 wrote: »
    When my son asked for a £60 pair of trainers (& answered my first response that it was a lot of money & I couldn't afford with a 'no, it's not a lot of money, some pairs are over £100!) I tried to explain that money was not limitless this way (as well as testing his mental arithmetic!):
    If an average person brings home £300 (e.g.) a week for 5 days work, how much do they earn a day?
    He said £60. So, that's a whole day's work for one pair of trainers. When you also have to pay for mortgage / rent, bills, food, travel & other essentials, did he still think that £60 was not a lot of money.
    At 9 years old, he got the message.

    Now, we calculate the cost of many things by 'how many hours / days' someone (mum / dad) has to work to pay for it. And he thinks twice.

    This needs to be emphasised from an early age - a child needs to be aware that money doesn't just come out of a hole in the wall but has to be earned - and this needs an awareness of what work is needed to earn a certain amount and also what essentilas money is needed for.

    Care needs to be taken with Martin's suggestion about taking 7 year olds to a supermarket checkout as they will tend to think that the buying of sweets is an essential rather than an impulse buy. They need to have the value of money and an understanding of the cost of items explained and reinforced from an early age/
  • Most of the posts (including Martin's) are very cynical.

    Yes, businesses are out there to make money and not help you out but these classes shouldn't be about raging against the capitalist machine. Much more important is giving children a basic understanding of everyday finance such as:
    - different ways to save and the pros/cons (savings account, investment, ISA etc)
    - different ways to spend and the pros/cons (cash, credit/debit card, debt)
    - tax system
    - benefits system
    - how to do a budget and the importance of forward planning (in my mind, this is the most important point)
    - monitoring your money

    Later classes could consider how the shops try to persuade you to spend and ways to shop around, haggle and work the system for your advantage but there's no point covering this if kids don't understand the basics. The main way companies are able to exploit people into making inappropriate choices is due to consumer ignorance. Educate people, and this will become harder.

    This would also hopefully help kids understand the importance of being numerate and confident with figures instead of seeing Maths as an abstract irrelevance (a personal pet peeve).
  • ben80ben80 Forumite
    106 Posts
    In principle it's a great idea as I had no 'financial education' (left Secondary in '97).

    Cue the moaning teacher...

    I'm a Primary School teacher and we can barely get anything done as it is - more and more is being packed in and nothing is being taken out, e.g. this year it was Modern Foreign Languages.

    Could Martin possibly remind Mr Balls (how unfortunate) that there isn't limitless time in a Primary classroom an that eventually something will have to give!
    LBM - 11/08
    DMP - 12/08 - £37,255
    DFD - [STRIKE]03[/STRIKE] 02/13 - [STRIKE]£6,454[/STRIKE] £3916 to go! (Unless my PPI & FOS claims are upheld, then it'll be earlier!)
  • I think they need teaching that when a bank/building society 'give' you an overdraft, they are NOT actually giving you anything. They are actually LENDING you the money, therefore it is their money, and YES you do have to pay it back.
  • tracey2412 wrote: »
    When my son asked for a £60 pair of trainers (& answered my first response that it was a lot of money & I couldn't afford with a 'no, it's not a lot of money, some pairs are over £100!) I tried to explain that money was not limitless this way (as well as testing his mental arithmetic!):
    If an average person brings home £300 (e.g.) a week for 5 days work, how much do they earn a day?
    He said £60. So, that's a whole day's work for one pair of trainers. When you also have to pay for mortgage / rent, bills, food, travel & other essentials, did he still think that £60 was not a lot of money.
    At 9 years old, he got the message.

    Now, we calculate the cost of many things by 'how many hours / days' someone (mum / dad) has to work to pay for it. And he thinks twice.

    What a sensible way to explain the cost of things to a youngster. Good on yer!

    Maggie
  • Hi Martin, i left home when i was 16 and i think i was very overwhelmed by the amount of different bills there was to deal with as a child your parents take care of this and you dont see how many there are. I think it would be a good idea to show children just how many bills a person could have especially when you start adding on insurance and credit card repayments, finance on a car etc. Maybe teach them how to budget i know that this would of helped me back then!!! I am a parent as well.
    Regards kerry davies
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