Money lessons set for school?

Posted on March 7th, 2011 | Categories - News

Money management may be taught in British schools.

Interest rates, bank accounts and credit cards could be covered in the curriculum in the future.

Financial education could be made compulsory in schools after over 200 MPs signed a motion to teach children about money issues within the classroom.

Topics such as how to compare bank accounts and how to buy mobile phones might become a key element of the national curriculum if the lobbyists succeed.

Conservative MP Justin Tomlinson, who heads up the group of MPs called Financial Education for Young People, said: “We are bombarded with mobile phone tariffs, direct debits, standing orders and complicated deals. It’s a difficult and challenging world out there, and I want to be able to equip young people so they can make informed decisions”.

Some schools already teach their pupils about money management covering areas like interest rates, tax and credit cards. However, if the motion is passed every school in the UK will be affected by the changes.

A few high street banks have pumped money into the system to provide schools with the resources they need to teach children financial basics like picking the right bank account.

Barclays bank alone has provided £15 million as part of a scheme to help 16-24 year olds better understand money matters. Deanna Oppenheimer, the chief executive of Barclays UK Retail said “the intent of this is not to win business” despite being accused of having its own agenda by charity groups.

She added: “Wherever a person chooses to get a current account, it’s just important they understand how to manage their money”.

John Hayes, the Minister for Further Education and Skills, said the wheels have already been set in motion within existing schemes that have already been passed by the government. He continued:“We know that people need to know how to manage money. Our support for high quality education feeds into our ambitions to build a literate, numerate citizenry”.