Calls Made For Schools To Teach Personal Finances
One of the UK’s leading life insurance firms is set to petition the government over the need for schools to teach lessons on personal finance.
Lifesearch says the action is as a result of the lack of financial education in schools, which needs to be addressed to help future generations avoid the stresses of money and debt problems.
The firm has already run a series of of presentations about campaign plans, consisting of research and resulting consumer targeting, media buying, social affairs lobbying and campaign analytics combination.
Tom Baigrie, managing director of Lifesearch, said: “There is an appalling lack of financial education in UK schools yet understanding how money and debt work is a key part, and major source of stress, during every adult’s life.”
He continued: “Is it any wonder that we have a mountain of personal debt when we can open a bank account at 16 without having the slightest clue what it means to save? Or take out a mortgage at 18 without a clue about debt or financial protection?”
Mr Baigrie said: “I wish a politician would stand up and tell the public that state benefits are miserably low and only likely to shrink in the future, and that anyone who does not protect themselves against the financial effects of physical disaster is barking mad.”
Colin Parkin, director of Lincolnshire-based IFA Ample Financial Services, has lent his backing to the idea.
He said: “How else do you learn about personal finance. If schools did it four or five generations ago we would not be in the mess we are in. Most parents are not very good at their own finances and you learn from your parents.
“Properly trained people will need to do it because it is a different discipline. I am sure most financial advisers would give a couple of hours to put in basic things.”
Lifesearch isn’t the only group calling for changes. Earlier this week, a Citizens Advice Bureau (CAB) forum discussed the need for more financial education to be taught in schools.
The Wirral CAB has seen a 12% yearly increase in people needing help with debts and unemployment and has begun evening sessions to cope with the demand for its services.
Conservative MP for Wirral West, Esther McVey said: “Organisations like the CAB are under extra strain during the recession each man, woman and child already has £22,500 of government debt, and with personal debt at an all time high there needs to be strict measures in place to tackle this crisis.”
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