Children Given Financial Education

The reality as of the early 21st century is that in the UK (and probably elsewhere) the current young generation risks being in the unenviable position of growing up poorer than the previous generation. This is a bitter pill to swallow and could mean relying on parents for support for longer and a bleak retirement.

Parents need to be the first to introduce loans and credit cards to their children explaining both the risks and rewards. If the banks get to them first they will think it's free money and we all know where that road goes. If nothing else, teach them the habit of saving so thoroughly that it becomes second nature, even if they do it just to shut you up.

Maybe hope is at hand with the government spending £11.5 million to roll out a new curriculum which teaches children about personal finance.

According to the HM Treasury, children, schools and families secretary and treasury minister the announced cash injection is a way to get children to think about the importance of managing money. They commented that it is important to give young people a head-start on monetary matters.

"It's never too early to encourage children to think about money and saving for the future," he said.

Such financial understanding represents a "key life skill". Children will be taught how to open a bank account, understand basic financial concepts like interest rates and learn important skills to plan for their financial future. The money will be used in both primary and secondary schools to teach children financial skills that will help them to manage their personal finances.

The government has also committed to a long-term savings and investment account for all children born on or after 1 September 2002; the Child Trust Fund (CTF). The CTF was launched to strengthen the saving habit of future generations, promote financial education and ensure that at age 18 every child has access to a financial asset. The Government will give every eligible child at least £250 to start the fund with a further payment of £250 when a child turns seven.

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