A report from the Money and Pensions Service (Maps) has revealed that less than half (47%) of children aged between seven and 17 have received a “meaningful financial education” either at school or at home.
It said that this figure has remained broadly static since last measured in 2019, when it totalled 48%.
The survey also found that some children were more likely to receive a meaningful financial education than others, depending on location.
Scottish children scored highest (52%), followed by those in Wales (51%), England (46%) and Northern Ireland (43%).
Children were also more likely to be financially educated if they lived in a higher income household (50%, compared with 44% in lower income homes) or living in an urban area rather than a rural one (48% and 40% respectively).
‘Profound consequences’
Sarah Porretta, executive director of Maps, said: “Our experiences in childhood prepare us for adulthood and learning about money is no different. Our financial decisions can bring real benefits and profound consequences, so it’s crucial to learn from a young age.
“The race is on to educate the nation’s children and everyone from banks and building societies, to foundations and financial institutions has a big part to play. Parents and schools can also make a huge difference by linking money skills with everyday experiences, both inside and outside the classroom. The target is two million more children to receive a meaningful financial education by 2030.”
Parents more open to talking to their children about money
Sarah Pennells, consumer finance specialist at Royal London, added: “Today’s research shows there is still a lot to do to engage younger people in money matters and to help them be financially fit for adulthood and managing their lives in the years ahead.
“Although the Maps findings show a clear lack of progress in engagement on financial awareness and money-management skills in the seven-17 age bracket, Royal London’s own research shows that parents have become more open to talking to their children about money over the years.”
Royal London’s research, published in July 2022, revealed that three in four (76%) of 18-24-year-olds had spoken to their parents about money matters when they were growing up. In contrast, less than half (43%) of those aged over 65 said that they’d had conversations with their parents about money in their younger years.
Pennells said: “While it’s positive that parents are talking to their children, making them ‘money confident’ involves more than conversations – however useful they are. If children aren’t getting enough financial education in schools or aren’t encouraged to understand how money works or to get into the savings habit early, they may find the money decisions they have to make later on in their life are that much harder.”
