Parents prioritise teaching kids about money
Over 80% of parents say they talk to their children about debt and money in order to prepare them for the realities of adult life.
A survey of nearly 2,000 people, carried out by friendly society Engage Mutual Assurance, found that British parents think educating their children about money is more important that talking to them about terrorism, racism or religion.
Parents said the wide range of financial choices available in the UK, as well as our growing debt mountain, meant helping the next generation take financial responsibility was of utmost importance.
Debt and saving are the most common financial topic of parental education, according to the survey.
Not all children are currently taught about money and their finances at school, as this subject is still not a compulsory part of the curriculum. From September 2008, economic well-being and financial capability will be included as part of personal, social, health and economic (PSHE) education in secondary schools. And from 2010, personal finance will also be incorporated into maths lessons at GCSE level.
However, these will not be a compulsory part of the syllabus and students will not be monitored through exams to access their progress.
Moneywise is currently petitioning the government to include personal finance as part of the National Curriculum as a standalone subject, as part of our Kids and Cash campaign.
Generally thought of as being interchangeable with insurance but isn’t. Assurance is cover for events that WILL happen but at an unspecified point in the future (such as retirement and death) and insurance covers events that MAY happen (such as fire, theft and accidents). Therefore you buy life assurance (you will die, but don’t know when) and car insurance (you may have an accident). Assurance policies are for a fixed term, with a fixed payout, and unlike life insurance have an investment aspect: as a life assurance policy increases in value, the bonuses attached to it build up. If you die during the fixed term, the policy pays out the sum assured. However, if you survive to the end of the policy, you then get the annual bonuses plus a terminal bonus.