Commons Sense

House of Commons · Westminster Hall

Financial Education in Schools

06 September 2023 · 6 other contributors · 12,623 words

Opened by Jerome Mayhew Con Broadland and Fakenham

Responding minister: Nick Gibb

Education

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Jerome Mayhew raised concerns about financial education in schools in Westminster Hall. A government minister responded.

Key points

  • The MP is concerned about the lack of financial education provided to children, citing its impact on earning capability and pension savings.
  • The MP asks the government to support a campaign to increase awareness of financial education in the national curriculum and provide improved teaching assets.
  • The Minister noted that over half of young people cannot read a payslip correctly and nearly three in ten cannot identify terms for interest and balance.

Key requests to Government

The MP asks the government to actively support a campaign to increase awareness of financial education as part of the national curriculum in England, develop improved teaching assets, facilitate access for external providers, and mandate schools to provide financial education if they are not doing so voluntarily.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Jerome Mayhew Con Broadland and Fakenham

The MP is concerned about the lack of financial education provided to children, citing personal experience and academic research. He mentions that habits form by age seven, and that many adults wish they had better financial education during the cost of living crisis. The MP highlights a correlation between financial education received in childhood and later earning capability and pension savings. Additionally, he notes the significant impact on mental health due to financial stress and the loss of productivity for individuals experiencing such stress.

Other contributors (6)
  • Andy Carter Lab Warrington South

    Expresses concern about the lack of financial education in schools, highlighting issues such as debt among constituents and the impact on mental health. Mentions the importance of programs like Young Enterprise and credit unions for teaching children basic financial literacy. Stresses the need to educate students about macroeconomics, including taxation and its role in funding public services.

  • Catherine McKinnell Lab Newcastle upon Tyne North

    She expressed the importance of financial education for young people, highlighting that managing money is fundamental to stability and security. She cited an OECD figure showing 10 million UK adults are financially illiterate. She noted the patchiness in teaching financial literacy across schools, with only 8% of students citing school as their main source of such education. McKinnell stressed the need for a curriculum review by Labour's next Government to ensure children leave school ready for life.

  • Gregory Campbell DUP East Londonderry

    He congratulated the hon. Gentleman on a timely debate and emphasised the importance of teaching younger people from lower socioeconomic groups about saving small amounts early in their careers for long-term benefits.

  • Marion Fellows SNP West Dunbartonshire

    Fellows, a vice-chair of the all-party parliamentary group on financial education for young people since 2015, emphasized the importance of financial education in Scotland where it is incorporated into primary and secondary school curriculums. She suggested that other regions could learn from Scotland's approach to embedding money management within their educational systems. Fellows highlighted the difficulty many face with digital money and stressed the need for people to understand the consequences of spending, especially among those living in areas of multiple deprivation.

  • Miriam Cates Lab Penistone and Stocksbridge

    Financial education is crucial for young people to understand the link between working hard at school, getting qualifications, and leading a desired lifestyle. Teachers can engage students more effectively by relating lessons to practical life situations, such as understanding financial implications of jobs and lifestyles. The speaker highlights that money management skills are often formed early in childhood and digital transactions have made it harder for children to grasp these concepts practically. Concerned about online issues affecting young people's financial education, she highlighted that over 50% of 18 to 24-year-olds report feeling anxious when thinking about their money.

  • Seema Malhotra Lab Co-op Feltham and Heston

    Ms. Malhotra supported the debate on financial education in schools, highlighting her personal experiences with financial awareness and its importance during a cost of living crisis. She cited statistics from the young persons' money index showing increased anxiety among young people about finances. Ms. Malhotra stressed the need for early financial education to build resilience and included examples from schools in her constituency that are successfully integrating financial literacy into their curriculums. Celebrated the success of Martin Lewis's textbook in schools, which is a primer for introducing financial education vocabulary to pupils.

Government Response

Nick Gibb

The Minister highlighted progress made in financial education, noting improvements in maths teaching methods and curriculum content. He cited statistics showing that over half of young people cannot read a payslip correctly and nearly three in ten are unable to identify terms for interest and balance. Over £181 million is being used as an incentive package to encourage people to come into teaching. The Government aims to reach 75% of primary schools and 65% of secondary schools with the maths hubs' teaching for mastery programme by 2025, supporting the delivery of financial content in the mathematics curriculum.

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