The Bigger Issue
The All Party Parliamentary Group
last month. But just how early shou Each month Mortgage Introducer takes a look at the bigger issues. This m
The Recent launch of the cross Party parliamentary Group shows that at last focus is being brought on how important it is to educate children and young adults on financial matters. For many years there has been talk of spending time and money on helping young people understand how shares, mortgages, pensions and investments work. Unfortunately there was not a lot of support for this and financial education does seem to be lacking in many young people. As a governor of a local junior school we have recently welcomed advisers from a local bank to come to the school and talk to children in the age 11 group. This is usually a friendly and informal short lesson and at least it does give children some basic knowledge and introduction into financial learning. However it is not a good idea to spend too much time at this early age as many children are simply not interested and we do not want them to become too worried about share prices and mortgage rates at age 11, after all they are only young once and we want them to enjoy their childhood.
However once they go to senior schools they should have the opportunity to learn about the basic financial subjects such as credit cards, pensions, mortgages and help them understand how being educated in these matters will help them in later life. The problem is getting this subject on the school curriculum as timetables are very tight due to all the exams that pupils face. However time must be found because financial education is very important and we must all help to build a financially aware society. This will help to ensure that the next generation is better prepared for the next financial downturn.
At the moment we see first-time buyers who might have good degrees and seem to be well educated; however they seem helpless when it comes to financial matters. We must change this situation; As Benjamin Disraeli said: “Upon the
Mike Fitzgerald, managing director of Brentchase Financial
education ofthe people of this country, the fate of this country depends.”.
I believe that children should be taught about financial education from primary school age. Children are taught about science and other key subjects at primary school and it is not considered to be ‘robbing them of the childhood’ so there is no reason why finance shouldn’t be treated in the same way. Everyone is affected by financial matters as they develop
towards young adulthood and need to understand the importance of saving, budgeting and the fundamentals of how to borrow money and the implications of doing so. The fact that 94% of parents believe that financial education
should be part of the national curriculum according to research by Equifax only serves to endorse my view and highlight the importance that responsible parents place on financial education from a young age. Having said that, parents have a key role to play in educating their children about financial matters too and this should be factored in to the initiative. Good education starts at home and parents should be encouraged to embrace money education in the same way they would basic English and mathematics. I’m sure that many adults today wish they had been better educated about financial matters from a young age and that if they had they would be in a better financial position now. There will always be a role for expert mortgage brokers and financial advisers when it comes to making major financial decisions such as choosing a mortgage or pension but in order to be in a position to have a mortgage or pension people need to understand basic financial principals. I welcome the setting up of the All Party Parliamentary
Group on Financial Education and hope that they can deliver the change required to make a real difference to tomorrow’s young adults. Talk is cheap and making things happen at a national level can be slow and tortuous.
I hope that primary and secondary school teachers will support this initiative too and lobby for change. I will follow their progress with interest and wish them every success with this important matter.
Sally Laker, managing director of Mortgage Intelligence Holdings
Our experts have had their say, now it’s your turn to have yours. Visit
www.mortgageintroducer.com and vote for the expert you think makes most 22 morTGAGE inTroducEr MARCH 2011
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