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One in five young people say financial education “wholly inadequate”

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Nearly one in five young people aged between 18 and 24 in the UK, many of whom will be grappling with student loan repayments or looking to start saving up for a mortgage, say the financial education they received at school was entirely inadequate. This is according to the latest research from Scape Group which is supporting the Credit Union Foundation in its creation of a schools savings club toolkit.

A further 68% of young people report not receiving any sort of guidance on financial matters while at school. Only 10% of 18-24 years olds report receiving an adequate or good level of financial education while at school.

The research also found 23% of young people lack confidence in dealing with their finances. Young people’s confidence in this regard is significantly lower than the average across all UK adults. 55% of all UK adults reported they were confident when dealing with their finances and 31% said they were very confident. Just 14% said they lacked confidence in matters of money.

Less than 1% of respondents to the Scape Group survey said that school was the place where they learned most about money.  59% of respondents described themselves as “self-taught” and 34% said they learned most from family and friends. This is despite the fact most respondents (48%) think schools should be the main source of financial education.

Since September 2014 financial education has been a compulsory part of the school curriculum, however the exact content of the programmes is left to the discretion of individual schools. More concerning is that free schools and academies, which account for around half of UK schools, do not need to follow the curriculum.

Respondents to the survey had clear preferences as to what should be included in children’s financial education: number one by a significant margin was ‘budgeting’ (81% of respondents indicated); followed by ‘savings and pensions’ (58% indicated) and the third most pressing area identified was ‘financial terminology’ such as ‘interest rates’, ‘APRs’ and ‘credit scores’ (46% indicated).

The late timing of the introduction of compulsory financial education in the school curriculum means that young adults operating in the current post-recession economy did not benefit from financial education as a compulsory aspect of the school curriculum. Parents with children of school age also reported on which financial products their children are aware of. The best-known product among young people was credit cards – 49% of children know what these are. This was in contrast to just 14% who know what a ‘doorstep lender’ is and 24% a ‘pay-day loan’.

Mark Robinson, Scape Group Chief Executive, comments: “In this post-recession period it is vital young adults in the UK are equipped with the skills to manage their own finances and build successful futures. However it appears that most have not been taught the basics in school and many young people are left to draw on their own experiences and those of family and friends to learn about money management, budgeting, different types of loans and other key issues. The majority of UK adults – 88% – do not believe the government is currently doing enough to equip young people with the necessary financial skills for adulthood.

“We think schools should be a key source of information when it comes to money management. This is why we are supporting the work of credit unions in schools, which can provide junior savings accounts and an understanding of a range of financial products to pupils. Credit unions support the communities where their members are in a way that contributes to the social, economic and environmental well-being of these areas. We are therefore proud to support the Credit Union Foundation, which is a further way Scape Group can instil value in communities beyond its built environment projects.”

Annette Warne-Thomas of the Credit Union Foundation said: “As well as serving around 1.6 million adult members across the UK, credit unions also have around 230,000 junior savers. Many of these young people joined a credit union through their school, and credit unions play a key role in helping the next generation learn about money and develop a savings habit.

“Scape’s support for the Credit Union Foundation will help more credit unions to work with their local schools in effective and sustainable partnerships.”

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Responsible Energy Investments Could Solve Retirement Funding Crisis

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Energy Investments
Shutterstock / By Sergey Nivens | https://www.shutterstock.com/g/nivens

Retiring baby-boomers are facing a retirement cliff, at the same time as mother nature unleashes her fury with devastating storms tied to the impact of global warming. There could be a unique solution to the challenges associated with climate change – investments in clean energy from retirement funds.

Financial savings play a very important role in everyone’s life and one must start planning for it as soon as possible. It’s shocking how quickly seniors can burn through their nest egg – leaving many wondering, “How long your retirement savings will last?

Let’s take a closer look at how seniors can take baby steps on the path to retiring with dignity, while helping to clean up our environment.

Tip #1: Focus & Determination

Like in other work, it is very important to focus and be determined. If retirement is around the corner, then make sure to start putting some money away for retirement. No one can ever achieve anything without dedication and focus – whether it’s saving the planet, or saving for retirement.

Tip #2: Minimize Spending

One of the most important things that you need to do is to minimize your expenditures. Reducing consumption is good for the planet too!

Tip #3: Visualize Your Goal

You can achieve more if you have a clearly defined goal in life. This about how your money can be used to better the planet – imagine cleaner air, water and a healthier environment to leave to your grandchildren.

Investing in Clean Energy

One of the hottest and most popular industries for investment today is the energy market – the trading of energy commodities. Clean energy commodities are traded alongside dirty energy supplies. You might be surprised to learn that clean energy is becoming much more competitive.

With green biz becoming more popular, it is quickly becoming a powerful tool for diversified retirement investing.

The Future of Green Biz

As far as the future is concerned, energy businesses are going to continue getting bigger and better. There are many leading energy companies in the market that already have very high stock prices, yet people are continuing to investing in them.

Green initiatives are impacting every industry. Go Green campaigns are a PR staple of every modern brand. For the energy-sector in the US, solar energy investments are considered to be the most accessible form of clean energy investment. Though investing in any energy business comes with some risks, the demand for energy isn’t going anywhere.

In conclusion, if you want to start saving for your retirement, then clean energy stocks and commodity trading are some of the best options for wallets and the planet. Investing in clean energy products, like solar power, is a more long-term investment. It’s quite stable and comes with a significant profit margin. And it’s amazing for the planet!

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How to make a sustainable living out of Forex Trading?

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sustainable forex trading
Shutterstock Licensed Photo - By Robert Kneschke | https://www.shutterstock.com/g/robertkneschke

There are two different types of forex trading in general: the profitable one and the not so profitable one. Everyone wants good profits at the end of the day, but unfortunately a good number of traders are burdened with the huge losses at the end of their forex careers. Many newbies run the other way around when they hear about forex trading due to heavy losses in their initial period. Of course, you would have heard about all those success stories, in your friends’ circle or on the internet. However, if you are looking forward to replicate those success stories, you need get yourself ready before that.

In this article, we will discuss the six essential skills that are needed to earn some profits from trading foreign currencies and make a sustainable living out of it.

1. Limit your risk ceiling

When you start with forex, you should try to define limits. Try to create a balanced scorecard that defines your personality with regards to various parameters such as your strengths, weaknesses, behaviors, and ability to take risks. It is essential that you list your financial goals before you start with forex trading.

2. Learn about leverage ratio and account type

When you start, brokers will suggest different forex trading accounts that might take you for a whirl if you aren’t prepared. Each forex trading account has its own pros and cons. It is essential that you engage with your broker to create a mini trading account so that you will be able to warm up on your forex trading skills in a low risk environment.

3. Start small

While starting out, some investors rush to have multiple currency pairs without doing proper research on them beforehand. It is very important have you understand the nature and volatility of a currency before you start trading a pair. Every single foreign currency is like a market onto itself. It is therefore important that you take the time to study about the country before forming pairs to understand the volatility of the currency. By using forex trading platforms such as ETX Capital, you can take informed decisions easily.

4. Learn to control emotions

A forex trader should never take any decisions on the spur of the moment based on emotions and should be as rational as he can. Controlling your impulses is the key to becoming a great forex trader.

5. Automate your processes

I am not suggesting you to rely completely on forex robots and trade copiers, but make use of the latest automation tech to execute transactions faster than ever before. Make use of automation features such as stop loss, price options etc. to make the most out of the exciting opportunities.

6. Keep it simple.

Not everyone can be a genius economist, mathematician and a trader, bundled into one. Forex trading is not a complex subject, you only need to arm yourself with positive thinking, and set yourself clear and realistic goals.

Conclusion

I hope this article was useful for you to learn about the key reasons why online forex trading is a good investment and how you can earn money through it. If you have any doubts with regards to this, let us know through the comments and we will be glad to help you out. If you have any suggestions regarding how we can improve the article, let us know them through the comments as well for us to improve.

Though it’s a reliable source of income, you will have to educate yourself properly before you start investing. It is important that you take the time to understand why things are the way they are before you jump all in and start making your first big bucks. All the best for your future ventures and keep coming for more interesting and useful articles.

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