Financial knowledge update

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In the UK, admitting yourself is a strange sense of pride Poor math. However the consequences Poor arithmetic When it comes to financial management, this is no joke.

The UK scores very low on financial literacy. According to a study by the Financial Conduct Authority, half of people lack confidence in money-related decisions. Researching widely Link high levels of economic deprivation with low levels of financial understanding. The least knowledgeable groups include low-income groups, young people, women, and ethnic minorities. For those with few errors in their budgets, a good financial decision can be transformative, and a bad one can be catastrophic.

“Financial Times” supports today A new charity event Lobbying for change. Scattered financial education is a problem before the pandemic, but the economic consequences of Covid-19 should provoke reactions from international policymakers.

The classroom is a good starting point. Although financial education is nominally the UK’s national curriculum, it is rarely listed as a priority, partly because it lacks any formal assessments or examinations. Given the pressure of teaching time, one solution is to inject more practical solutions to financial problems into the math class.

In terms of their ambitions and goals in life, even math-phobic students have a natural fascination with money, such as A new wave of young investors Attracted by “memetic stocks” and cryptocurrencies.The regulator has Express concern Bad actors on social media provide too much financial “education”. Providing better alternatives in schools can solve these two problems.

A solid basic knowledge will give students the confidence to solve money-related problems in life, from Student debt with Buy now, pay later Deal to Pension savings.

The Scottish curriculum has taken a more practical approach and infused financial knowledge into the teaching of mathematics and social studies.According to government data, Scottish students have the highest level of financial ability in the UK Money and pension services.

There is also a need for better communication. The broader financial industry should reconsider product design and wording.A study by the Financial Times and Ipsos Mori found that only half of the 3,000 respondents were able to correctly Compare borrowing costs Overdraft via credit card or bank, regardless of wealth, race or gender.

Learning needs to continue outside the classroom. Continuing education is a key area that allows young people to put the first real test of financial management and debt bearing.Employers also have a role; improve financial literacy In the workplace This makes sense, because it is where life-long savings are usually accumulated. As pension plans become less generous and employment becomes more unstable, these are the skills people need in their financial lives.

This news organization is keen to support positive change.Financial Times Financial Literacy and Inclusion CampaignIt is a new charity supported by the Financial Times, which aims to educate and lobby for policy improvements. Where possible, it will involve readers of the Financial Times and the wider financial industry in addressing these shortcomings, first in the UK and then around the world.

Not every child will inherit wealth, or the help and advice of parents. But whether rich or poor, a higher standard of financial education can become a lasting legacy for everyone.

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