8 October 2015

Why Aren't We Teaching Our Children How To Mange Money

School is supposed to be the place where children learn everything they will need to know about life. From maths and basic English to how to bake, sew and even the birds and the bees. But one thing that is lacking, one thing that should be at the top of the list, is how to manage money, and how debt management is so important. 

I sit back and think about how lucky I am that I haven't had to take out loans, had to borrow money, got myself into debt, but then realise that I'm wrong. This house I live in, this place I call home is not actually ours until that last mortgage payment is paid and then it fell into place that actually, that is one big debt that will take us years to pay off.

And not just that. Debt isn't just ordering a games console from a catalogue and paying it off monthly with an extortionate interest rate, it's those student loans that you have to take out when going to university. This now means that all higher education student will finish their degree's in thousands of pounds of debt, before they even start on their adult life's journey. 

I saw a report that My Voucher Codes had conducted whereby it said that 70% of 15 to 18-year-olds will leave school ‘dangerously unprepared’ for the financial responsibility they will have to undertake, including taking out loans or managing budgets.

Photo by Serge Bertasius Photography from www.freedigitalphotos.net
According to the survey, the amount owed by households is now topping £173bn as Britain is seeing a high record of families battling debt within the household. People who haven't learned how to organise their money, how to save, even down to budgeting.  

The study, which I found in the Independent, reveals that Students are not receiving enough debt management education and expert warn that the country runs the very real risk of storing up long-term problems for the economy as a result of this.

When you grow up, have a family, have children, you don't want to be starting out this life in debt, not knowing how to get out, causing stress and just making life miserable. And even students themselves know this also as 50 per cent of 586 students aged 18 to 21 said schools should do more to educate about how to manage money and also debt management for helping with those student loans and mortgages. 

Photo by Vichaya Kiatying-Angsulee from www.freedigitalphotos.net
Surely, in a day and age whereby personal loans are so easy to come by, where everything is so extortionate in price and where you can't leave eduction without already owing money, we should be doing more. The government should be doing more. There should be some sort of education to show people how to manage their finances and what to do when it all becomes too much. 

This shouldn't be done in just higher education though. It should start out young. I already teach my children about money and how important it is. They know that if they see an amazing toy that they just have to have, then they need to save themselves. I give them pocket money and make them fully aware that once it's gone, it's gone, so they can either choose to spend it straight away or save till they have enough for that amazing toy. 

So surely we should all play a part in teaching the younger generations how to manage money properly. From parents and right through school, it should be top of the agenda to help us get out of this debt crisis we are currently in. 

3 comments:

  1. Couldn't agree more - it's such an important life skill to learn x

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  2. Wow. I couldn't agree more. What a fantastic post to publish.

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  3. I know so many people that are constantly in debt, its almost a way of life

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