| Proposals by the Financial Services Authority (FSA) to | | | | wide range of other subjects and lead to a step |
| make personal finance a compulsory part of school | | | | change in the number of young people leaving school |
| education have been welcomed. | | | | with the necessary skills to manage their own |
| Today John Tiner, chief executive of the FSA, | | | | finances effectively," he added. |
| claimed that by ensuring young people have "basic | | | | The announcement is the latest in a series of calls to |
| levels of financial competence" they could be able to | | | | improve the country's financial awareness. Earlier this |
| develop a better knowledge of monetary products | | | | year, the British Bankers' Association and Building |
| such as personal loans and savings as they progress | | | | Societies Association urged to the government make |
| through life. "I would hope that Ed Balls, in his new | | | | education on areas such as loans and mortgages a |
| role as Secretary of State for Children, Schools and | | | | compulsory component of the curriculum. Meanwhile, |
| Families, will be able to ask his new colleagues to find | | | | 85 MPs signed a parliamentary motion calling for all |
| room for financial education on the mandatory core | | | | secondary schools to be made to offer a stand-alone |
| curriculum at the earliest opportunity," he added. | | | | qualification in personal finance. |
| His comments follow calls by the ifs School of | | | | Consequently any move to improve financial |
| Finance and a number of other organisations to | | | | education could be a boost for Britain's young people. |
| require all schools to offer students the opportunity | | | | According to research by Credit Action, less than 40 |
| to study for a qualification in personal finance, in a | | | | per cent of those under the age of 30 would know |
| similar way that they currently do for other subjects | | | | where to go for advice if they develop debt |
| such as history and foreign languages. Gavin Shreeve, | | | | management difficulties. Meanwhile, some 15 per cent |
| chief executive of ifs School of Finance, claimed: "We | | | | of 18 to 24-year-olds believe that an individual savings |
| are delighted that the FSA have recognised that | | | | account (Isa) is an iPod accessory with one in ten |
| financial education needs to have a much stronger | | | | deeming it to be an energy drink. |
| place in the curriculum than the current non-statutory | | | | They also claim that roughly four out of five young |
| arrangements." | | | | adults, are not aware of their own financial situation, |
| Mr Shreeve also pointed to independent research | | | | with one in five claiming to be unaware to the |
| carried out by the University of Manchester which | | | | nearest £100 of how much money they have. |
| revealed that 95 per cent of students who took a | | | | Overall, some 25 per cent of all British adults were |
| course with the financial firm were consequently able | | | | said to not know how much money they spend over |
| to manage their finances better. "Adding personal | | | | the course of a week, which in turn may cause |
| finance to the list of qualification options at age 14 | | | | these consumers to encounter difficulties budgeting |
| would give financial education an equal footing with a | | | | and making loan repayments. |