150 Parliamentarians blast “abject failing” by successive governments on primary financial education

New charity founded to target primary school financial education as new research shows almost a quarter worry about money 

Today, a coalition of financial services firms launched a new charity, the Centre for Financial Capability, as new data reveals almost a quarter (23%) of primary school children worry about money¹ and 85% of children and young people believe that if you look after money, it makes you feel better.²  The UK Government has welcomed the launch of the charity, which has been accompanied by a video from John Glen MP, Economic Secretary to the Treasury and City Minister.

The new charity has a mission for every primary aged child to receive an effective and high-quality financial education, which has been reinforced by calls by the 150 members of the All-Party Parliamentary Group on Financial Education for Young People today for primary financial education for every child by 2030. In a powerful new report, the APPG says the lack of primary provision is an “abject failing by successive governments”, which has condemned “large numbers of children and young people to lives mired in financial difficulties”.

Despite a 2019 survey by the Money and Pensions Service finding that one third of children receive financial education at primary school,³ new polling reveals the proportion of primary children who have been taught how to look after their money at school is closer to one fifth (22%)⁴. This is despite ground-breaking research published eight years ago showing money habits, that stick with children for life, are formed around the age of 7.⁵

The Centre for Financial Capability has been formed by supporters of KickStart Money, an award-winning coalition of savings and investment firms who have donated over £1 million to fund the KickStart Money financial education programme, delivered by MyBnk, to over 20,000 primary pupils across the UK. However, 20,000 is just a fraction of the almost 5 million children in state funded primary schools.

The Centre for Financial Capability will bring together stakeholders across the primary financial education space to effect change. It will also foster innovative new delivery models, build evidence of what works and work with Government to maximise the provision of primary financial education for all.

In the statement made at the launch of the new charity, John Glen MP, Economic Secretary to the Treasury and City Minister said:

“Over the last year we’ve learned many things, but one of them is how important it is for people to have the information, the skills and the confidence to engage with their finances. The Centre for Financial Capability is a testament to the difference that can be made when financial services and the voluntary sector join forces to improve financial education for children and young people, and I’m really looking forward to seeing what the Centre can achieve in the months ahead.”

Jane Goodland, Trustee of the Centre for Financial Capability and Corporate Affairs Director at Quilter plc said:

“ Too many children and young people are being let down by the current system that offers far too little, if any, preparation for their financial future and therefore condemns many to financial insecurity and vulnerability in later life. Currently, millions of children and young people leave school without any financial education, leaving them vulnerable to economic shocks, unprepared for future financial decisions and at risk of targeting by criminals and fraud. Rising levels of unsustainable debt and mental health issues associated with money have to be tackled at one of the root causes, a lack of understanding.

“No parent would let their children go swimming without swimming lessons first and yet we are releasing millions of children into adulthood without the first idea about to manage their money.”

“We are very grateful to the Economic Secretary to the Treasury and to all our backers, old and new, for their support. We look forward to working with charities, financial services firms, the Government and other stakeholders within this space to achieve tangible change for the next generation and protect them from financial vulnerability and debt in later life.”

The Money and Pensions Service’s 2019 CYP Financial Capability – UK Children and Young People’s Survey found that only one third (33%) of primary school age children now recall learning about managing money in school.

Of respondents aged 6-10, excluding those who selected “don’t know”, almost a quarter (23%) agreed with the statement “I sometimes worry about money”.

Of respondents aged 6-15, excluding those who selected “don’t know”, 85% agreed with the statement “I believe that if you look after your money, it makes you feel better”

Of respondents aged 6-10, excluding those who selected “don’t know”, only 22% said they had ever been taught about money by teachers and/or another adult at school. We defined “how to look after money” as follows: we mean someone explaining why money is important, how to plan any spending as well as how you can save and borrow money.

In 2013, research by the Money and Pensions Service, authored by Cambridge University, found adult money habits are set by the age of seven years old.

The Centre for Financial Capability is a new charity, with a mission to ensure every child in the UK develops the skills and behaviours necessary to navigate critical financial decisions in their life – starting from primary school. This charity has been formed by the backers of KickStart Money, an award-winning coalition of financial services firms founded in response to ground-breaking research by the Money and Pensions Service that showed money habits are formed by age 7. Now, having proven the impact of early intervention financial education, the members of Kickstart Money are putting their commitment on a longer-term more sustainable footing to combat the key challenges preventing effective financial education for all. The Centre will champion a diverse and long-term programme of work, which will consist of continuing to fund the KickStart Money programme, fostering innovation, building evidence and supporting research and campaigning for change. 

The supporters of the Centre for Financial Capability include Alliance Trust Savings, the ABI, Aviva, AXA Investment Managers, BMO Global Asset Management, BlackRock, Columbia Threadneedle Investments, CQS, Janus Henderson Investors, Lazard Asset Management, Legal & General Investment Management, Legg Mason Global Asset Management, Liontrust Asset Management, M&G Investments, Newton Investment Management, Pool Reinsurance Company Limited, Prudential, Quilter, Schroders, Standard Life Aberdeen and St James’s Place Wealth Management.

Today, the All-Party Parliamentary Group on Financial Education for Young People published the outcome report from its inquiry into the provision of primary financial education. The inquiry was supported by Young Money, in its capacity as Secretariat of the APPG, and sponsored by the Centre for Financial Capability. The Chair of the APPG is Julian Knight, MP for Solihull.

All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 1079 children aged 6 to 15. Fieldwork was undertaken between 14th – 20th June 2021.  The survey was carried out online. The figures have been weighted and are representative of all GB children (aged 6 to 15).