pfeg calls for the coalition government to lead the way in providing financial education for children and young people

Source: pfeg

25 May 10

New era, new politics, same challenge for personal finance education

pfeg (Personal Finance Education Group) – an educational charity – will celebrate ten years of achievements in personal finance education in schools across the country at the House of Commons today.

In a new era of politics pfeg and Prudential (one of its major supporters) are calling for the coalition government to lead the way in supporting the future financial capability of the country by encouraging key decision makers to commit to the following 5 points over the next 5 years:

Maintain the momentum – We have a new era and new politics but the same challenge for personal finance education. The work must go on, and is particularly important in the current economic climate. There has been a marked change in the numbers of young people receiving financial education. If we want them to become financially responsible adults who have the skills and confidence to make informed and independent decisions, we must make sure that all schools teach high quality personal finance.
Commit to fund – We know what needs to be done and we know how to do it but we will need the resources to address the need for personal finance education. CFEB (the Consumer Financial Education Body) must continue to be a key source of funding for financial capability for school aged children and young people.
Give teachers the skills they need – As schools take on more responsibility for the curriculum we need to arm teachers with the right skills to give children the good start to which they are entitled. Sustainable personal finance education means improving initial teacher training and continual professional development. The most important element in learning outcomes is the quality of teaching.
Create a fairer society through financial capability – The gap between rich and poor pupils is widening and the children who struggle the most often have the greatest need for life skills such as financial capability. We need to develop targeted support for vulnerable young people and those with special educational needs. Good money management skills will help them achieve success as adults. The UK wide Money Guidance service will raise the profile of finance skills. School leavers who are financially competent will be able to make more effective use of it as they will understand when they need to go for help.
Focus on personal responsibility – We need our young people to be numerate and literate but these skills by themselves are not enough. Young people need to understand their own behaviours and motivations if they are to make informed and independent decisions about financial matters. Early intervention is vital in changing behaviour and prevention is more effective than trying to address the problems that arise from poor financial decisions later in life.

Wendy van den Hende, Chief Executive of pfeg, said:

“On our 10 year anniversary we are taking a moment to celebrate our achievements but we cannot rest on our laurels. There is a long way to go before every child in primary and secondary school has access to quality personal finance education that is delivered by teachers with the knowledge, skills and resources that they need. We must give children and young people the financial acumen to analyse, challenge and question as these skills will create future generations of financially responsible adults.”

Barry O’Dwyer, Deputy Chief Executive, Prudential UK, said:

“Proper financial education for our children and young adults is an absolute must. In our business, we see the true impact of financial decisions that are made earlier in life coming home to roost 20 to 30 years down the line. When these decisions are informed the outcomes can be spectacularly positive but unfortunately the opposite is also true. Perhaps now more than ever before, it is critical that our children are given sufficient financial education to prepare them for the future."

ENDS

For more information please contact:
Marina Mello
Marketing & Communications Manager
Direct line 020 330 9483
Mobile: 07703316498
Email: marina.mello@pfeg.org

Notes to Editors

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 and local authorities 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 funded by Prudential.

About Prudential
Prudential UK is a leading life and pensions provider with approximately 7 million customers in the United Kingdom. It operates from two core strategic UK sites in Stirling and Reading and has offices in London, Belfast and Dublin, as well as a customer service centre in Mumbai. Prudential UK provides a range of products and services including individual and bulk annuities, individual and corporate pensions, withprofits bonds, onshore and offshore bonds, savings and investments, lifetime mortgages, healthcare and protection products. Prudential is also the corporate pension provider to 20 per cent of FTSE 350 companies and manages more than 4,000 pension schemes. Prudential UK is part of Prudential plc, the international retail financial services group with significant operations in Asia, the US and the UK.