Preparing the next generation

Last month saw children across the UK get involved in My Money Week. This national activity week aims to give primary and secondary school children the opportunity to gain skills and improve their confidence about all things money.

It’s an ability that’s incredibly important, especially in an increasingly digital world. Nowadays, it can be quite easy to get a debit or credit card and run wild through online stores. And if young people don’t get a grasp on financial responsibility, it could cause troubles down the road. Especially for parents.

There’s light at the end of the tunnel though, as numerous studies have shown that if children and young adults are given some key skills then they’re likely to outperform their parents. In fact, Nimbl found that children set aside 7.5% of their weekly pocket money on average. This is a big improvement on us adults who managed a meagre 4.9%. Perhaps we can learn something from them?

Other studies have actually shown that in households where kids are comfortable with money, the overall household has a better understanding on finances, budgets and more.

Sadly, children don’t seem to get enough financial education at school. The London Institute of Banking and Finance found that as much as 54% of 15 to 18-year-olds don’t get taught anything financial at all – which should set alarm bells ringing.

So maybe we should be working to bridge this gap? To reach out and help the younger generations. After all, the future will come around faster than we expect.