Schools: Financial Education

Lord Sandhurst Excerpts

Wednesday 31st January 2024 Lords Chamber

[Lord Sandhurst (Con)]

My Lords, I am grateful to my noble friend for introducing this short debate and doing it so well. I have five points to make in the short time I am allowed.

First, as we have heard, the 2023 MaPS survey showed that children’s attitudes to money have developed by the age of seven. To encourage good habits and discourage bad ones, they need education young. As the noble Lord said, it should start in primary school.

Secondly, financial education is supposed to be part of the secondary school curriculum. The 2023 survey by Comparethemarket and others reported that only 40% of young adult respondents were considered financially literate, while 61% of young adult respondents did not recall receiving financial education at school. Some of them probably did but obviously it was not adequate.

That is not surprising; I come to my third point. It is estimated that 11 to 18 year-olds need at least 30 hours of financial education in a school year to become financially literate. However, in fact, those who do receive such education—somewhere around 50% or 60%—get about 48 minutes a month. I calculate that to be around nine hours a year—well short of the 30 hours necessary. It is too little to too few.

Fourthly, we now know that schools have a vital role from early in life. Financial education is part of the curriculum but the evidence is that two in five teachers are not even aware that it is a required part. It has been found that, of those who are aware, more than half find it challenging to teach. Perhaps that is not surprising because it is not part of their training.

Fifthly, and lastly, we must train teachers and embed this in their continuing professional development. We must ensure that it is taught across all schools and at all ages. The more disadvantaged the child, the greater the need; they will not learn it from their parents. The duty to provide financial education should therefore be put on a statutory basis and include primary schools.