Financial education in schools and colleges could boost the UK’s chances of long-term, sustainable economic growth and is key to improving the life chances of young people, the independent financial advisory group deVere has said.
The organisation said it noticed the lack in education after attending an event to engage, train and provide young adults with new skills. It added that as a country, education on the fundamentals of personal finance was “woefully ill-informed” and as a result lessons should be taught in schools.
Kevin White, deVere UK’s head of financial planning, said, “At this event I gave practical, workable advice, tips and information about budget planning, paying off debts, the repercussions of not paying bills, which can include defaults, county court judgements and bankruptcy, and the importance of setting mid to long-term financial goals.
“Strikingly, not one of those in attendance had ever been given any kind of financial education before. With such a lack of basic financial literacy it is perhaps unsurprising that so many individuals fail to achieve their financial objectives.”
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The deVere Group argues that by providing the means to learn additional skills around finance and improving knowledge the economy will benefit because those who are ‘better-off’ will be more likely to become wealth and job creators in their own right and as a result be less dependent on the state. This is “crucial for Britain’s long-term economic growth and sustained competitiveness”, it added.
The organisation has called on the government to offer financial planning in schools and for firms to receive additional tax relief if they provide financial planning courses to employees.