Financial Education

Peter Bedford Excerpts

Thursday 6th February 2025 Commons Chamber

[Mr Peter Bedford (Mid Leicestershire) (Con)]

I thank my hon. Friend the Member for Broadland and Fakenham (Jerome Mayhew) for bringing this immensely important debate before the House. I am sure that hon. Members will have seen the Barclays bank television advert explaining how money habits and behaviours are formed in young people by the age of seven, but Governments of all colours have continuously failed in promoting the teaching of sound financial management to young people. The education system is supposed to teach young people the game of life, yet currently we are not even teaching them the rules of the game before they play.

Previous Governments tried, with the coalition Government introducing it into the national curriculum in 2014, but little progress has been made since then. It is an indictment that one in two Brits were found to be unable to pass a financial literacy test run by the OECD. The UK is well below comparable western nations such as France, Norway and Canada; indeed, we rank alongside Thailand and Albania. How on earth can it be the case that, as one of the wealthiest countries in the world, that is where we sit?

Why is this of particular concern now? Technology has opened up a new world of consumerism. I am able to sit in the comfort of my own home and purchase pretty much any item I would like. It is the epitome of having the freedom to make one’s own financial decision. However, that freedom comes with an understanding of how choices will impact my own personal financial wellbeing. At the click of a mouse or even a touch of a screen, young people can make high-value purchases without knowing how it may impact them, because they are not taught the importance of budgeting and saving.

Young people are becoming addicted to buy now, pay later schemes, which allow them to enter into credit agreements without fully assessing whether they will be able to afford them in a few months’ time. There is also the additional threat of fraudsters targeting young people in the hope that they will not know how to deal with complex financial problems. Is it any wonder that 96% of young people worry about money daily?

We must do something about this. The ongoing national curriculum review should not remove any aspect of the financial education that already exists, since it remains an important part of school life for students. I am not the only one saying that, as 95% of parents believe that schools should be at the heart of developing better understanding of financial education for young people. Alongside keeping it on the national curriculum, better support for teachers and long-lasting improvement is needed. I hear of teachers having real concerns about their own ability to teach students about sound money. I strongly urge the Department and its partners to instigate better advice for teachers on how to improve the quality of these lessons.

Finally, as a strong supporter of apprenticeships and vocational training, I would like the Government to promote financial teaching in post-16 educational settings. Put simply, one in three students leave school at 16 for apprenticeships or employment. At a time of increased spending, they potentially lose all chance of being taught financial education. Is it any wonder that nearly half of all apprentices struggle to keep up with their bills?

It would be negligence of the highest order not to protect and strengthen the financial education provision for our young people. We must not stand idle and allow the next generation to walk into financial ruin through not understanding the thing that, whether we like it or not, makes the world go round.