The latest information on financial literacy
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The UK has a low financial literacy score. According to a survey by the Financial Conduct Authority, half of the population is not confident in making money decisions. Numerous studies It combines a high level of economic deprivation with a low level of economic understanding. The groups with the least know-how include low-income groups, young people, women and ethnic minorities. For those who have little room for budget mistakes, good financial decisions can be transformative and bad decisions can be catastrophic.
Today’s Financial Times New charity campaign Lobby for change. While patchy financial education was a pre-pandemic issue, the economic impact of Covid-19 should stimulate reaction from international policy makers.
The classroom is a good place to start. Financial education is nominally in the national curriculum throughout the UK, but it is rarely prioritized due to the lack of formal evaluations and exams. Given the pressure on class time, one solution is to inject more practical economic problem-solving into math lessons.
Even students who dislike math have a natural appeal to money in the context of their aspirations and goals of life. A new wave of young investors It is drawn in by “meme stocks” and cryptocurrencies.Regulators already Express concern There is too much financial “education” provided by villains on social media. Both issues can be addressed by providing better alternatives at school.
FT Financial Literacy and Inclusion Campaign
The Scottish curriculum has already taken a more practical approach, injecting financial literacy into both math and social studies education.According to the government, Scottish students have the highest level of financial capacity in the UK Money and pension services..
We also need better communication. The wider financial industry needs to rethink product design and wording. According to a survey by FT and Ipsos Mori, only half of the 3,000 respondents are correct Compare the cost of borrowing Through overdrafts of credit cards and banks, regardless of wealth, ethnicity or gender.
Learning needs to continue beyond the classroom. Further education is an important area for young people to take the first real test of managing money and borrowing money. The employer also has a role.Improving financial literacy at work It makes sense because it’s a place where lifelong savings are common. As pension schemes become less generous and employment becomes more volatile, these are the skills people need to navigate their financial lives.
The press is keen to support positive change. FT Financial literacy and inclusion campaignA new FT-backed charity was set up to provide education and lobbying for policy improvement. If possible, FT readers and the broader financial industry will be involved in addressing shortcomings, first in the UK and later around the world.
Not all children inherit wealth and the help and advice of parents that often accompany it. But the higher standards of financial education, rich or poor, can be a lasting legacy for everyone.
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The lasting legacy of financial literacy Source link The lasting legacy of financial literacy