Financial education debate welcomed

An organisation has welcomed calls for British schoolchildren to be given more substantial financial education lessons in school to help them manage their savings.

The ifs School of Finance, which provides GCSE, A-level and AS level-equivalent qualifications in personal finance, said it welcomed a House of Commons debate held yesterday in which former education spokesman Phil Willis MP spoke on the need to improve financial education in schools.

Mr Willis said that today young people faced a more complex financial future and referred to government proposals to incorporate personal finance into GCSE maths from 2010 as a "tasty soundbite" with "no real substance".

Public affairs manager at the organisation Phil Hall commented: "There is evidence to suggest that having a standalone qualification in personal finance would change the behaviour of young people and equip them with the necessary skills to make informed financial decisions."

The fact that this had been acknowledged in parliament was "encouraging", he stated.

Recent research from National Savings & Investments revealed that 44 per cent of 16 to 24-year-olds say friends put pressure on them to spend more yet, only 11 per cent are influenced by friends in their decision of whether to have a savings account.