Financial education pays dividends
Compulsory financial education could make Britons significantly wealthier by the time they reach their late 40s, according to new research.
Equipping children with basic financial skills could see them better off to the value of £32,000 between the ages of 35 and 49, a report for Norwich Union shows.
Seventeen million adults in the UK successfully manage their finances - through making ends meet, keeping track of their money, planning ahead, choosing products and staying informed - but as many as 10.5 million have difficulty in at least one of these areas.
The report, written by IPPR Trading, reveals that complexity is one of the most common reasons people do not undertake financial planning, along with the lack of low-cost advice and the desire for short-term gain over long-term security.
But the research shows that when it comes to financial planning, it pays to know what you are doing.
Drawing on research from the United States, it reveals that between the ages of 35 and 49 a single person with no children could be better of to the tune of £13,000 as a result of compulsory financial education as a child.
A couple with no children could be £22,000 better off, while a couple with two children aged five and eleven could be better of by about £32,000.
"It pays to get clued up," said Miranda Lewis, senior research fellow for IPPR Trading ltd.
"This research shows that when financial education is introduced onto the curriculum next year it could pay real dividends later in life.
"But we also need to go beyond education to support the millions of adults who are currently struggling with their finances. More advice and support needs to be made available to all adults."
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