Last week, my 11-year-old daughter uttered eight words that put a big smile on my face: “Daddy, we learned about finance at school today.”
This was followed by: “That’s what you write about isn’t it? I really enjoyed it!”
She went on, quite excitedly, to tell me that they had spent a fair bit of time talking about stocks and shares, funds, Isas and pensions. But it didn’t stop there.
For the next part of their introduction to financial education, her Year 6 class were set a task called the ‘Fiver Challenge’.
As the name suggests, they were each given a £5 note by their school and told to buy whatever they wanted (within reason, of course).
Altogether, she made £23, giving her a tidy little £18 profit. Alan Sugar would be proud
The aim of the challenge was for them to sell their goods on the school grounds and make as much profit as they could in teams of four.
All the profits, they were told, would then be put towards their end-of-year party, so they could say goodbye to their friends – and primary school life – in style.
So, after driving her up to Sainsbury’s and waiting around like a lemon while she dashed around manically filling her basket in a scene not dissimilar to Supermarket Sweep, we arrived back home and she got straight to work pricing everything up.
I was pretty impressed with her haul, I have to say.
She brought a pack of 12 doughnuts for £3.50, which she decided she would sell for £1 each and a pack of mini doughnuts (10 for £1) which they’d sell for 20p each.
In addition, she got a few packets of biscuits (which she worked out they would sell individually) and a bottle of cheap lemonade (which she would flog for 50p per cup).
Altogether, she made £23, giving her a tidy little £18 profit. Alan Sugar would be proud.
What I found very sweet – and hugely encouraging – was how much she enjoyed the whole thing
The second part of her financial education involved ‘investing’ a virtual £100 into the stock market; however they saw fit. She chose to lump it all into Cadbury’s, which is unsurprising for a borderline chocoholic with a permanent stash of the stuff squirreled away somewhere.
Unfortunately, this didn’t go quite as well as the ‘Fiver Challenge’ and she saw some of her profits melt away (sorry, couldn’t resist).
What I found very sweet – and hugely encouraging – was how much she enjoyed the whole thing.
It proved that learning about finance doesn’t have to be boring.
If you actually make it fun and engaging, it doesn’t feel like so much of a chore and they almost forget that they are actually learning at all. Kids love a challenge, and the prospect of making a few quid on top really motivated her and her friends – even if they weren’t directly pocketing the proceeds…
In this profession, advisers have long been talking about the importance of financial education and teaching kids about money at a much earlier age.
Seeing my daughter’s and her friends’ reactions to it last week really reaffirmed, if ever it needed reaffirming, just how important it is.
Like many others my age, I was never taught about finance at school but I really wish I had been.
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I’m not going to sit here and say my life would have turned out differently, but I feel it would have helped shape my decision-making. Knowledge is power, as the old saying goes.
Of course, there is never any guarantee the knowledge you impart to children, or anyone else for that matter, will end up being acted on.
But at least it plants the seed and makes them think a little bit more about their future and what they want it to look like.
In my opinion, the current curriculum isn’t fit for purpose. There’s too much focus on academic subjects and not enough on important life skills such as how to manage money.
And the impact of that lack of access to financial education is now being felt by millions – just look at the looming pensions crisis.
Last year, there was a welcome breakthrough when the cross-party education committee opened an inquiry into financial education in English schools.
In short, it concluded that it is insufficient and should be expanded as a matter of urgency.
Some of the words respondents used to describe it during the inquiry were “dismal”, “inconsistent” and “in a parlous state”.
My daughter coming home talking about finance is clearly a step in the right direction and indicates some progress is being made, at least.
I’m glad to see things might slowly be changing, but it’s a real shame it’s taken so long.
The impact of a lack of access to financial education is now being felt by millions
I can’t help but wonder how many people, how many generations, would have made more sensible financial decisions if they were equipped with just a bit more knowledge.
Ultimately, people have a degree of responsibility to educate themselves.
But let’s be honest, not many 11-year-olds are going to spend their screen time learning about the difference between a Gia and a Sipp.
If my daughter’s viewing habits are anything to go by, they’d much rather be watching YouTubers playing pranks on each other and seeing how many sweets they can fit in their mouths.
So the government need to take action. It must press ahead with the committee’s recommendations with urgency to avoid another generation missing out on what many did before.
Things are moving, but not quick enough. So many futures depend on it.
