Sam Fielding from Nationwide explores how to help young people build financial confidence.
Financial education is a crucial aspect of preparing young people for the future. In the UK, initiatives like Nationwide’s Money Lessons programme are making significant progress in ensuring that children and teenagers gain the knowledge and skills they need to manage their finances effectively. Here we look at why financial education is so important and how it can benefit young people for the rest of their lives.
Building a strong foundation
From a young age, understanding money management can set the stage for a lifetime of financial stability. It’s vital that the basics such as budgeting, saving, and understanding credit are understood and embedded before children develop bad habits when it comes to managing money and the truth is, in England, it’s not seen as a mandatory part of the national curriculum. Creating engaging and accessible learning for children helps students grasp complex concepts in a way that is both fun and informative. It’s important to also consider students with Special Educational Needs (SEN) to ensure that every child, regardless of their learning style or abilities, can benefit from financial education.
Empowering informed decisions
Financial literacy empowers young people to make informed decisions about their money. By learning about budgeting, students can understand how to allocate their resources wisely, ensuring they can cover their needs and save for future goals. Understanding credit and debt helps them avoid common pitfalls and make smart choices when it comes to borrowing and spending.
Preparing for the future
The benefits of financial education extend far beyond the classroom. As young people grow older, the skills they acquire through programmes like Money Lessons will help them navigate the complexities of adult life. Whether it’s managing student loans, saving for a home, or planning for retirement, a solid foundation in financial literacy is invaluable.
Learning at home is important too
Parents and guardians play a crucial role in reinforcing the lessons learned in school. Engaging younger family members in conversations about money can be a great way to supplement their education. Simple activities like setting up a savings jar, discussing household budgets, or playing educational games can make learning about money a part of everyday life.
Long-term benefits
Studies have shown that children who receive financial education are more likely to develop positive financial habits. They are more likely to save regularly, have a bank account, and feel confident managing their money. These habits can lead to greater financial security and independence in adulthood, reducing the likelihood of debt and financial stress.
Financial education is not just a school subject; it’s a lifelong journey. By supporting initiatives like Nationwide’s Money Lessons, we can help build a generation of financially savvy individuals who are equipped to handle the challenges of the modern financial landscape. Whether you’re a teacher, parent, or community member, there are many ways to get involved and make a difference.
For more information about the Money Lessons programme and to access our resources, please visit www.nationwide.co.uk/moneylessons .
