pfeg Press Release: Recession teaches children tough lessons about money
Source: pfeg
17 Mar 10
New research from YouGov commissioned by HSBC and the Personal Finance Education Group (pfeg) shows that children have been strongly impacted by the recession. Over a third of the children (34 per cent) interviewed have heard adults say they cannot buy something because of the recession more than once a week, whilst a quarter of them have actually reduced their own spending because of the recession.
The survey was unusual as it not only covered over 1,000 children aged 9 -10 but it also interviewed their parents as well. The survey looked at children’s understanding of money and was commissioned as part of the What Money Means programme, an initiative to expand financial education in primary schools.
Key findings:
• The recession has reinforced children’s good instincts about money: 80% say they would save up to buy something rather than get into debt, and over half said that if they were given £20 they would choose to save some of it.
• Children see cutting back on luxuries as the best way to handle the recession: Nearly half think their family should cut back on toys and trips out.
• Although children were very protective of healthcare and services for the elderly, over 60% of them think the government should cut spending on the 2012 Olympics.
• Four-fifths of parents think it is important to have financial education in primary schools. 29% of parents say that they talk to their children about money more because of the recession.
• Children want to use money to learn: half see books and computers as necessities. Over a third (34%) saw their mobile phone as a necessity, whilst iPods, trips out and new clothes were seen as luxuries
• Only 26% of parents are feeling more optimistic about the economy than this time last year
Commenting on the survey, Wendy van den Hende, Chief Executive of pfeg, said:
“The survey shows that children have very good instincts towards money and they seem to be natural savers. This does not always last into adulthood, which is why we are working to improve financial education in schools to reinforce these instincts. It is good to see that parents also agree that this is important.
‘We believe that What Money Means has made a real difference. Children learn the value of money, the dangers of getting into debt and the basics about the banking system. Whoever wins the next election, and whatever happens to the economy financial education needs to be kept on the agenda.’
Peter Bull, Head of HSBC in the Community, which supports the What Money Means project, said:
‘It is very reassuring to see that many children want to save rather than get into debt. However there is a danger of children picking up bad habits from adults. HSBC actively supports financial education at an early age because it can reinforce children’s better instincts.’
Ends.
For further details of the research, or photographs, please contact James Worron using the details below.
NOTES TO EDITORS
• The Survey work was carried out a sample of 1,076 children aged 9 and 10 and their parents. The sample was representative in terms of gender balance, regional origin and socio-economic status and drawn from YouGov’s UK representative panel of 275,000.
• All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,076 parents and their children aged 9 to 10. Fieldwork was undertaken between 12th and 16th February 2010. The survey was carried out online. The figures have been weighted by region and social grade.
• What Money Means was launched in October 2007 by pfeg and HSBC. It is a five year financial capability education programme, worth £3.4 million, which looks to improve the money skills of primary school age children across the country. During the life of the programme, What Money Means will directly support up to 36 local authorities. In addition, up to 10,000 HSBC volunteers will share their expertise with people in their local schools and communities by working with teachers in the classroom.
• pfeg is the leading financial education charity. Its mission is to ensure that all young people leaving school have the skills, knowledge and confidence in financial matters to participate fully in society.
• pfeg works with teachers, Whitehall and Westminster, consumer bodies and financial industry representatives to assist schools in delivering personal finance education to the highest possible standards – making sure that children and young people are able to understand money and make informed choices which will guarantee them security and economic well-being in the long-term.
• pfeg is an independent one stop shop of advice, support and resources for school leadership teams and individual teachers needing help with integrating personal finance education into school and lesson plans. The Charity has clear accredited standards for personal finance teaching resources through the pfeg Quality Mark.
• HSBC Holdings plc serves over 125 million customers worldwide through around 10,000 offices in 83 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. It is one of the world’s largest banking and financial services organisations, and is marketed worldwide as ‘the world’s local bank’.
• HSBC considers investment in education essential to any society’s long-term prosperity: in 2008 alone, the company donated in excess of £29 million to educational projects worldwide. In the UK, HSBC’s involvement in What Money Means will give primary school age children an understanding and knowledge about money that will be critical to helping them manage their finances as adults.
• What Money Means offers free consultancy support direct to local authorities to help them plan, develop and embed personal finance education across their primary schools. The techniques and materials developed through the project by teachers in the classroom and experts from local authorities are available to all 17, 500 primary schools in England.
ENDS
