After receiving financial education in the classroom, two out of three primary school children are actively saving one year later – double the average rate of 34%.
Sessions delivered by financial education charity, MyBnk to 7-11 year olds covered issues including money mindsets, attitudes and behaviours, consumer choices and key skills such as budgeting financial prioritisation.
The study of 3,000 children by evaluators Substance, also found that 59% of children who couldn’t delay instant spending gratification now can and 74% of those that couldn’t distinguish between needs and wants are able to after participating in one of the sessions.
The findings come as a letter signed by the CEOs of 20 leading savings and investment firms is delivered to the Prime Minister calling for compulsory financial education in primary schools. Over three years the KickStartMoney coalition is aiming to help plug the financial education gap by delivering free financial education to 20,000 primary school children via MyBnk.
Guy Rigden, CEO, MyBnk says: “We have strong evidence that catching pupils young with things like budgeting and saving develops positive money mindsets and habits. By the age of seven, children are already facing limits on their future aspirations. By making financial education compulsory at primary school age and supporting teachers we can have a powerful impact on the lives of young people”.
James, an 11-year old pupil from HACTG Primary School who has participated in one of the MyBnk sessions says: “It's changed me because when I usually go to the shops with my sister I'm thinking, “Why can't I buy things too?” Now I think, “Do I really need this? Can't I use this money and save it for something else more important?”
Currently there are no compulsory money lessons for primary school children in the UK. This is despite young people being the fastest growing group of debtors and the most susceptible to fraud and scams.
Only 52% have had any financial education in school – mostly delivered by teachers who haven’t received any training in the area.
Each year Moneywise recognises the best personal finance teachers in the UK in its Personal Finance Teacher of the Year Awards.