You're Never Too Young to Learn Facts of Finance; the Debate over Financial Education and the Lack of It Is Hotting Up. So When Is the Right Time to Start Teaching a Child the Value of Cash? Vicky Shaw Investigates

The Journal (Newcastle, England), June 8, 2013 | Go to article overview

You're Never Too Young to Learn Facts of Finance; the Debate over Financial Education and the Lack of It Is Hotting Up. So When Is the Right Time to Start Teaching a Child the Value of Cash? Vicky Shaw Investigates


Byline: Vicky Shaw

WITH university fees placing young people in debt early in life and the growth in expensive payday loans, the next generation needs to understand its APRs just as well as its ABCs.

But new research has revealed a worrying lack of skills among many teenagers and young adults when it comes to managing their money.

The study found that more than two-fifths of 14 to 25-year-olds were unable to recognise the letters "CR" on a bank statement as meaning that a balance was in credit.

In another warning sign for the nation's future finances, more than a quarter of young people did not know that it would be better to opt for a lower APR (annual percentage rate) than a higher one when taking out a credit card or a loan, according to the report by Barclays and charity pfeg (Personal Finance Education Group).

Successive governments have been trying to encourage more youngsters into a lifetime savings habit, with the introduction of Child Trust Funds and, more recently, Junior Isas.

So how old should children be when we start arming them with the skills they will need to navigate the world of finance? It could be much earlier than many of us think.

The Government recently announced that financial education will become compulsory in English secondary schools from next year, a move that will bring the country in line with the rest of the UK.

However, there are growing calls for politicians to go much further by giving children better financial know-how from primary school level onwards.

Recent research published by the Money Advice Service, an independent body set up by Government, found that youngsters have already formed their money-management skills by the age of seven.

Behaviour experts at Cambridge University, who compiled the report, said most seven-year-olds have already grasped how to count out money and know that it is used to buy goods. They have also worked out what it means to earn money, what an income is and how to plan ahead.

Children were found to pick up many of their financial habits by copying their parents' behaviour - both good and bad.

So if you're a mother or father of a young child then be warned: you need to add "bad money management" to the list of things not to do in front of the kids.

Showing a child how to handle their money is a fundamental life skill, as important in its way as teaching them to read and write.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

You're Never Too Young to Learn Facts of Finance; the Debate over Financial Education and the Lack of It Is Hotting Up. So When Is the Right Time to Start Teaching a Child the Value of Cash? Vicky Shaw Investigates
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.