Today the House of Commons Education Committee report into strengthening financial education titled ‘Delivering effective financial education,’ has been released, following an inquiry the Committee held between November 2023 – March 2024.
Having contributed oral and written evidence to the inquiry, with MyBnk CEO Leon Ward appearing before the Committee in January, MyBnk and Compare the Market have both responded to say that they are delighted with the strong case the report makes for improving financial education provision in England.
In their view, the report aligns perfectly with MyBnk’s mission of empowering everyone with financial knowledge and Compare the Market’s purpose of making financial decision-making a breeze for everyone.
The report also reflects some of MyBnk and Compare the Market’s core recommendations made in their collaborate research report on its one year anniversary, referencing this in its main body.
Background
The Education Committee established the inquiry to examine the current state of financial education in England and consider what steps are needed to ensure its delivery is improved, that schools and colleges are more confident in its application, and that pupils and students are better equipped for a fast-changing financial and economic world.
The Committee explored what we should be teaching young people about money, where financial education should sit within the curriculum, and whether the provision of financial education should be extended to primary schools and post-16 education.
The Report
Overall, ten years after financial education was added to the national curriculum, the report makes a powerful case for how the Government can embed the lifelong skillset within the curriculum, beginning with a child’s first steps in primary school and continuing until their last days of further education at eighteen years of age.
Summarising the evidence received, the Committee notes that two central points emerged from this:
- Providing children and young people with a financial education that is comprehensive and age appropriate is essential.
- The provision of financial education in schools in England is currently inadequate and must be improved urgently.
These points echo the key findings made in MyBnk and Compare the Market’s collaboration project. This found that under three and a half hours per month of financial education for 11-18-year-olds could help make the majority of young adults financially literate, yet also that almost two-thirds of young people do not recall receiving any financial education at school at all.
In addition, MyBnk and Compare the Market are delighted to see the Committee’s recommendations reflect our own report’s recommendations in other ways:
- The report argues that the amount of time dedicated to financial education in secondary schools is insufficient and that the Government should prioritise financial education as part of its plans for compulsory maths lessons up to 18 – a step towards our report calling for a government guarantee of 30 hours a year of financial education for every 11–18-year-old.
- The report recognises the benefits of a cross-curricular approach to financial education, whereby aspects of it are taught in various subjects across the curriculum to help pupils understand its relevance in different contexts – our report’s call for 30 hours a year of teaching would only be possible with this cross-curricular approach.
- The report argues that the Government should consider offering a specific qualification in financial literacy as a minor subject in the Advanced British Standard – MyBnk called for dedicated financial literacy modules as part of our written evidence.
- The report recommends the mechanism through which the Education Secretary can make regulations to expand the provision of financial education in schools – our report called for financial education to be included in regulatory frameworks to ensure high teaching standards.
- The report recommends that financial education training be provided to teachers, while also calling on the Government to work with stakeholders to make available a selection of high-quality teaching materials – as highlighted in our evidence, MyBnk stands ready to support teachers and schools in effectively delivering financial education.
Of course, as a lifelong skill requiring lifelong learning, an individual’s financial education journey does not end at the school gates. MyBnk’s dedicated programmes ensure that young adults have access to financial education as they go through some of the most challenging financial transitions – when leaving home, going to university and entering the workplace.
Next Steps
The Department for Education will publish a response to the Committee’s report in due course. MyBnk and Compare the Market have said that they will look forward to reviewing this response, and are committed to working with policymakers to boost access to financial education and financial literacy to ensure that every young person can make informed decisions with their money.
Commenting on the report, Leon Ward, CEO, MyBnk says:
“From a very young age, we engage with money almost daily. Despite this, financial education in the UK remains significantly lacking. It’s common to hear people say, ‘I wish I’d learned that in school’ when we discuss MyBnk’s work. Without understanding financial concepts, products, or the economic environment they are entering, how can young people today thrive as adults tomorrow?
“MyBnk welcomes the latest Education Committee financial education report and is committed to enhancing the financial capability of the next generation. By collaborating with corporate partners, like-minded charities, and local governments, we aim to transform the financial futures of young people, equipping them with the skills, confidence, and knowledge needed to succeed.”
Also commenting on the report details, Katja Oakley-Bell, personal finance expert at Quilter said:
“The UK Parliament’s Education Committee’s report on delivering effective financial education marks a significant step towards addressing the longstanding gap in financial literacy among young people. The report rightly emphasises the critical need for integrating financial education in the curriculum at both primary and secondary levels. Ultimately, this recognises the importance of early financial literacy in fostering long term financial independence and security.
“As highlighted in the report itself: “Children use money at an increasingly young age and with greater independence, often making transactions that are immediate and, at times, irreversible.” Therefore, the report’s recommendation to integrate financial education starting from primary school is crucial, especially in light of the ongoing cost of living crisis and the shift to a cashless society. Stories of children spending huge amounts of money on micro in-game purchases on parent’s cards are becoming all too frequent. Children from a young age require robust financial skills to manage money effectively and avoid the ways of overspending with digital transactions.
“A more structured inclusion of financial education into both maths and PSHE is sensible and will ensure that all students regardless of the type of school they attend receive comprehensive financial education. Financial literacy is not just simply about managing money well but also developing a broader sense of financial wellbeing. If we can imbue students of all ages with this, then we can help them develop into adults who understand the benefits of saving and live happier lives as a result.
“Today’s report provides a comprehensive framework for enhancing financial literacy in this country. Government should hopefully take its recommendations which emphasise the importance of early education, practical financial skills and the need for financial education to form a much greater portion of a child’s education throughout both primary and secondary curriculum. The report lays the foundations that if built upon will create a more financially literate future generation.“
