Money management lessons planned

22 October 2008 12:05am

Schoolchildren are to be given lessons in managing their money under a new government initiative.

The £11.5 million financial education programme will see youngsters taught about dealing with financial matters from when they start school through to university, or when they begin working.

The My Money initiative will also help parents to answer their child's financial questions by providing them with a guide about what their youngster is learning in the classroom. The programme is expected to cover everything from teaching reception age children how money is used to instructing undergraduates on how to manage debt.

It comes as new research reveals that even children are now feeling the effects of the credit crunch.

A survey commissioned by pfeg (the personal finance education group), found that seven in ten parents now say that money is a more regular topic of conversation in the home than it was 12 months ago.

More than half of young people (54%) said that in recent months their parents have no longer been able to afford items they have been used to having at home, while a further 15% say they have heard their parents arguing about money.

In addition almost half of parents (44%) believe that working with schools is the best was to teach children about money matters.

Launching the My Money programme, schools secretary Ed Balls said: "Financial capability education has always been high on the Government's agenda. This research demonstrates that it is more crucial than ever that young people are fully equipped with the confidence, skills and knowledge to manage their money effectively both now and when they become adults.

"Lessons learned at school can help young people in their day to day financial planning and this will help equip young people as they leave school to begin working life or continue with their education."

The Populus survey questioned 1,000 adults and young people aged seven to 15 at the end of August.

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