It’s time to start teaching finance

This month Naomi Howells, Managing Director at recruitment specialists Class People and regular Education Today columnist, adds her voice to the rising tide of opinion urging the government to introduce financial education in our schools.

Recent publication of survey results from YouGov on behalf of the Money and Pensions Service (MaPS) has revealed that overwhelmingly, teachers believe that pupils should receive financial education as part

of their schooling. The insight, which gathered the thoughts of 1,012 teachers, found that 76% believe young people graduate from school or college lacking essential financial skills for life. 26% believe these skills should be introduced gradually from nursery level; 44% believe it is suitable from the age of five; and 19% favour from the age of eight. The survey has led to MaPS – an arms-length body, sponsored by the Government – advising that financial education should be more fully incorporated into schooling, extending the existing curriculum.

This makes sense, given that:

• a study by Aviva highlighted that just 44% of Brits understand the impact of inflation on their savings;
• 93% of consumers believe that their education failed to adequately prepare them to manage their finances, according to the Banking and Finance Review; and
• research by Eligible found that 11% of Brits have encountered long-term implications to their borrowing or spending, due to not understanding their own financial situation.

So, it seems appropriate to advocate for the expansion of financial education throughout the schooling system, but it’s never that simple.

In a system that is already stretched to capacity and is heavily under resourced, how can schools begin to consider the introduction of a new teaching stream, and particularly one that has complex and tightly governed considerations too? How can they manage the introduction of more, without exacerbating the existing challenges of poor staff retention, overwork, and mental health concerns, at the same time assuring quality of delivery?

Further survey insights highlight that despite the importance of financial education, 79% of teachers believe other subject take precedence; 25% cite a lack of confidence to teach this information;

26% are unsure where to access support of resources; while other concerns include the complexity of the subject, the sensitive nature of

money, and a lack of interest from young people.

For schools, it seems inevitable that financial education is looming in the coming academic years, and that it will be essential to overcome the challenges cited by teachers, in order to make this learning possible. Practically, for schools this will likely mean the sourcing of appropriate

third-party resources, but it could present opportunity for innovation, not just in the curriculum, but also with staffing and fundraising. Unlike many topics which can feasibly be taught by existing teachers, financial information can be sensitive, complex, and is tightly governed. The use of floating teachers to deliver the curriculum at age-appropriate levels throughout the school; third-party educators; or even working with

experts in the local business community, could be pivotal in delivering suitable education pathways. It might also present opportunity for optimising fundraising through PTAs or grant applications, seeking additional income streams with the specific directive of improving all round education.

Our Class People Foundation makes grants of up to £1,500 available to schools across the Midlands and South West to enhance extracurricular education in schools.