5 scary facts for Halloween: why a lack of financial education is truly frightening

Children in England are now being taught about money as part of the national curriculum and we found some startling statistics which demonstrate the importance of financial education …

  1. 42% of young people aged 14-25 were unable to identify the difference between being overdrawn or in credit on a bank statement. The survey by money education charity Pfeg also found that 13% didn’t actually know what an overdraft was.
  2. 28% of the same group didn’t realise it would be better to opt for a low APR than a higher one when taking out a credit card or loan.
  3. According to research prepared for the Guardian, one man saw a £200 payday loan increase to £1,851 in just three months. It’s just one example of how these loans can spell disaster if you don’t understand the terms – and there is now one payday loan lender for every seven banks or building societies on Britain’s high streets.
  4. The Money Charity reports that every 4 minutes, 51 seconds, someone is declared insolvent or bankrupt in the UK.
  5. 15 celebrities were named in a Telegraph feature on stars who have been declared bankrupt (and this is by no means a comprehensive list). With names ranging from Donald Trump and former Westlife member Shane Filan to Neil Morrissey and Kerry Katona, it adds to the impression that being in debt has become more socially acceptable.

Sources: Pfeg, The Guardian, The Money Charity

What can you do to help?

For ideas on how to teach your children or grandchildren about money, take a look at our infographic and read our blog about fun money-related apps and games.

To find out more about what will be taught in schools, take a look at our at-a-glance guide to what has changed from this term.

Back to School – Money is Now on the Curriculum

This blog is intended to provide information, not financial advice, to help you make an informed decision about savings and investments. We do not offer financial advice. You should contact a financial adviser, who may charge a fee, if you want financial advice.

Do your children understand the value of money?

Pocket Money Savers’ Guide: Help your children understand the value of money

Children who are encouraged to save are far more likely to continue saving as adults, according to research by the Royal Economic Society, so a little time invested now could mean your children will reap the rewards in adulthood.

It can be challenging to teach your children the value of money, especially if you struggle with your own personal finances, but adult money habits are set by age seven, according to a Cambridge University study, so time invested now will reap rewards later.

Help your child learn about the value of money with four easy steps: earning, saving, spending and starting good family financial habits.

Pocket Money Savers

Children like to feel they’ve earned their own money, so pocket money (on the same day every week) in exchange for chores is a great way to develop healthy money habits. Your kids should also be encouraged to save their money in a money box or piggy bank each week, and be reminded that the more they save, the more they’ll have and the greater the reward.

Saving can be fun, and you can involve your child in your daily life to encourage them to spend wisely. Draft a shopping list with your child and go out and buy those items together, ask them to compare prices, then explain how a credit card works at the till. Save for a family holiday with a coin jar and make fun packed lunches for work and school.

Download and print a PDF of our Pocket Money Savers Guide

Squirrelling away those savings?

Foresters Friendly Society offers a range of savings options which may suit your needs, depending on how much you want to save and how long you want to save for.

To find out more about them click here

This blog is intended to provide information, not financial advice, to help you make an informed decision about savings and investments. We do not offer financial advice. You should contact a financial adviser, who may charge a fee, if you want financial advice.