- 06
- Mar
The government has instigated a program to start teaching financial management in schools as soon as 2008, but this is too little, too late, for students who are in high school now.
A report released by the Personal Finance Education Group, a financial education charity, said that most teenagers have developed a troubling laid-back attitude toward debt. According to their figures, more than half have borrowed money before they reach 17 years old.
An alarmingly high number of teens believe that credit is a method of spending beyond their means. Their attitude is that a credit card is something you use to buy whatever you want and leave your parents to settle up when the bill comes in. Like a perpetual advance on their allowance.
Unfortunately, this attitude is being carried into their adult life.
David Bennett, formerly the head of a large high school in the north of England, believes that schools must play a vital role in teaching students how to manage money.
“All aspects of money management should be taught, from making the best use of pocket money up to obtaining a mortgage and maintaining the payments on a loan,” he says.
“Some of the older ones were interested in such matters as getting their own place, a flat to live in. They wanted to know how much it would cost to be independent, running their own affairs.”
David adds “Financial literacy can be taught anywhere but it is best to teach it formally in school.”
Students need to be taught that £250,000 borrowed over 50 years could result in a repayment of £750,000, an amount that will take more than a lifetime to repay.
