Since leaving school 21 years ago (blimey, that makes me feel old), I don’t think I’ve ever been called upon to solve equations such as 2x − 5 = x + 3 or to know the difference between an acute and an isosceles triangle.
To be honest, I still don’t understand this stuff, but I’m pretty certain it hasn’t affected my daily life in the slightest.
Of course, there are some people who go into careers such as engineering, astronomy, computer/data science or mathematics, where skills like algebra are important.
Advisers should look upon this as an opportunity to promote a profession that offers both progression and a long-term, worthwhile career
But, for a huge portion of the population, they aren’t.
What everyone does need to know, on the other hand, is how to budget, how to not get into unmanageable debt, what a mortgage is and how to save for their future.
Missing out
Financial education became a compulsory part of the citizenship curriculum for 11- to 16-year-olds in England back in 2014.
But the problem is, not all schools follow the national curriculum and, as a result, many youngsters miss out on these essential life skills.
Yes, there are some schools that have started to teach a form of financial education (including my daughter’s), and that’s great. But, considering what a huge impact finances have on people’s lives and wellbeing, not nearly enough focus has been given to the topic.
At long last, however, this is starting to change.
I hope the effects of compulsory financial education in schools ripple into the financial planning world in a positive way
The Department for Education announced in early November that, from September 2028, financial education will become compulsory for all primary and secondary school pupils in England.
Simple things ─ such as knowing how to live within your means and not spend all your money on sweets, the importance of emergency savings and the power of compound interest ─ may sound obvious, but you only know it if you’re taught it.
‘Falling into’ advice
I’m not ashamed (well, maybe slightly) to admit that I didn’t truly realise just how important some of these things were until I joined Money Marketing at the age of 36. And a big reason is that I was never taught about them in school.
So it’s great that, in the future, children will leave school with at least some idea of how to handle their finances.
If we can’t find a way of encouraging younger blood into the profession, there won’t be much of a profession left
But I hope the effects of compulsory financial education in schools ripple into the financial planning world in a positive way.
I’ve lost count of the number of times financial advisers have told me they ‘fell into’ the profession by accident. And this is primarily because financial planning is not adequately advertised to school- and undergraduate-level students.
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Careers days are full of people pushing accountancy, law, medicine, all manner of tech-led roles, even journalism – but financial advice barely gets a look-in.
There are initiatives within the profession that are starting to change this, however: The Verve Foundation’s We Are Change programme, academies such as St James’s Place and our own Future Financial Adviser community, to name just a few.
Yet the number of younger advisers is still worryingly low. And the statement, ‘I fell into advice,’ persists in nearly every interview I conduct.
Considering what a huge impact finances have on people’s lives and wellbeing, not nearly enough focus has been given to the topic
To throw some numbers at you: an FT Freedom of Information request last year reported that 20% of UK financial advisers were aged over 60, and 51% were aged 50 and above. By contrast, only 6% were aged under 30, and just 24% were under 40.
Vital awareness
It’s clear from the stats that something needs to change. If we can’t find a way of encouraging younger blood into the profession, there won’t be much of a profession left once the older advisers have retired.
Not to mention that financial planning needs a broad mix of ideas if it is to avoid becoming what it is often perceived to be: a profession full of older, middle-class white men who help rich people get even richer.
The number of younger advisers is still worryingly low
It should be so much more than this.
So, beyond educating our children on how to manage money, here’s hoping compulsory financial education will finally help raise awareness of the industry and propel careers in advice into the mainstream.
Advisers should look upon it as an opportunity to promote a profession that offers both progression and a long-term, worthwhile career.
Dan Cooper is news editor of Money Marketing
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For more practical information on how to get started in financial advice, please visit our Future Financial Adviser community. We tell you how to take the first steps, how to get ahead and what attributes you need to flourish. Even better, we can put you in touch with helpful contacts.
