Schools: Financial Education

Lord Parekh Excerpts

Wednesday 31st January 2024 Lords Chamber

[Lord Parekh (Lab)]

My Lords, I congratulate the noble Baroness, Lady Sater, on securing this debate and introducing it so well.

In two minutes I can do no more than raise three important points about financial education. In a survey, over two-thirds of secondary school teachers did not know that financial education was a curriculum requirement. Nearly two-thirds of young adults did not remember receiving it. As was pointed out earlier, for those who did receive it, it amounted to no more than 48 minutes, as opposed to the 30-hours minimum requirement.

Starting with that kind of base, I want to ask three questions about financial education. First, why does it have such a low profile; why is it not widely known, properly researched and talked about? Secondly, what are the consequences of marginalising financial education in this way? If a child’s attitude to money is shaped by the age of seven, what happens to those children who are past the age of seven but have not been exposed to this kind of education at all?

My third question relates to the content of financial education. What will you teach in financial education? Will it simply be how to spend money and how to save it? If it is to be proper financial education, it must be about the financial system and about explaining to a child what it is to have £1 and how a piece of paper acquires the value of £1 or £5: in other words, explaining to them how our system works and why money is in some sense central to our social system. Once we do this, children will begin to understand how our society is propelled by money, why it is pathologically obsessed with money and what can be done to avoid the consequences of that obsession.