| Young Britons could be set to develop a more | | | | ensure that every child, no matter what their |
| responsible approach to loans in later life following the | | | | background, has the financial skills to achieve |
| introduction of a multimillion pound financial literacy | | | | whatever they want in life." |
| programme in schools, it has emerged. | | | | He added that as CTFs provide a "financial head |
| Under the 11.5 pounds million objective, primary and | | | | start" for children, the need to learn how to manage |
| secondary school pupils across the country are to | | | | money is set to become "real and tangible in the |
| receive access to resources aimed at helping them to | | | | classroom". As a result, he claimed pupils will be able |
| manage their personal finances throughout their | | | | to apply what they have learnt when applying for a |
| childhood and as they get older. Consequently, as a | | | | loan or setting up a savings scheme in later life. "It is |
| result of becoming more aware of financial terms and | | | | vital children understand how maths is relevant to |
| products such as personal loans in their youth, | | | | everyday issues like opening a bank account, |
| children could be able to manage their money and | | | | shopping and saving," Mr Balls claimed. |
| create budgets more effectively in later years. | | | | Treasury minister Kitty Ussher added: "Financial |
| Under the scheme, in which funding will be made | | | | understanding is a key life skill. Children need to |
| available from 2008 to 2011, a variety of resources | | | | understand the value of money and how to interact |
| will be centered around Child Trust Funds (CTF). By | | | | with financial service providers to provide for their |
| using CTFs as a way of talking about managing | | | | own futures. The skills they will learn in class, |
| money in maths lessons, teachers could be set to | | | | combined with the experience of having their own |
| bring "finance to life". In addition, staff are due to | | | | savings product, will better equip them to avoid |
| receive "high quality training and support" so as to | | | | financial problems in later life." |
| help them pass on the best possible knowledge of | | | | Towards the end of last month, a Citizens Advice |
| personal finances to children. | | | | spokesperson reported that the introduction of |
| Meanwhile, the secondary school curriculum is set to | | | | mandatory personal finance education in secondary |
| include a specific economic wellbeing and financial | | | | schools could vastly improve the general British |
| capability section, where pupils will be able to learn | | | | attitude towards credit. The representative claimed a |
| about budgeting, tax and savings, as well as | | | | "lot of debt problems" are due to a shortfall in |
| monetary products such as personal loans and | | | | knowledge about financial terms and confidence |
| pensions. | | | | when to comes to dealing with money. However, by |
| Commenting on the announcement, Ed Balls, | | | | bringing in classes, children may be able to learn how |
| secretary for children, schools and families, said: "It's | | | | to budget their outgoings and search for a |
| never too early to encourage children to think about | | | | competitive rate of interest on an unsecured |
| money and saving for the future and we want to | | | | personal loan. |