Financial Education in Schools

Adapted from an Australian Government report investigating Financial Literacy among women.

Financial literacy programmes in schools: This approach to improving financial literacy is advocated in Australia and internationally, by government and the business sector, because it reaches a large part of the population and is a means to teach basic concepts to young people before they face financial crises or have to make major financial decisions.


There is ongoing discussion about where in the curriculum financial studies ought to be incorporated: mathematics and personal development are two favoured learning areas. Also under discussion are questions of when financial education should start and what should be included (ASIC 2001). While discussions continue, government initiatives have begun in Australia, the USA, Canada and the UK.

Financial education in schools has the potential to allow young people the opportunities listed by the UK Financial Services Authority (1999):

•to develop numeracy, literacy and IT skills in the context of personal finance;

•to develop an understanding of the nature and use of money in its various forms, including credit and debt;

•to learn how to access, interpret, question and evaluate financial information and advice;

•to learn about the consequences of financial decisions and about consumer rights and responsibilities; and

•to learn how to weigh up risks and benefits in order to choose appropriate solutions to particular financial needs.

Such a suite of skills, they believe would equip young people to deal with financial situations as they arise.

One of the main limitations of financial education in schools is that students may have a limited interest in learning about things that have little immediate relevance to their lives. While they may be keen to learn about buying a car, they are unlikely to be interested in superannuation. Further, as the range of financial services and products continues to grow, it is not feasible for schools to provide comprehensive financial education.

The effectiveness of financial education in schools is also affected by limitations on time available and teachers expertise.

Interesting Article from The Scotsman

A MONTH after Scotland was nursing its collective Hogmanay hangover, many people will now be nursing a fresh headache as their credit card bills land on the doormat.


According to statistics from insolvency trade body R3, almost four million people in the UK indebted themselves to pay for Christmas and approximately 6.5 million do not have enough money to pay for the subsequent credit card bills.
 
The core issue here is the awful example adults give their children when they rack up so much debt. Kids look to adults as role models in many areas. Why should their attitudes towards personal finance, debt and consumerism be any different to our own?
 
Read the full article here

Financial Literacy For Kids - Check out the new shop and resources

In case we haven't see you for a while there have been a few changes at The Financial Tales.
We have added a selection of free resources and games to help promote financial literacy for kids.

You will also notice our new shop or store depending on your version of English!

Here are the links to purchase Dreams Can Come True in paperback plus The Last Gold Coin and The Magic Magpie in digital ebook format

Click here to go directly to the shop page