- PERSONAL FINANCE EDUCATION is being harmed by poor knowledge and low confidence among teachers, as a new survey suggests that more than half of teachers can’t explain simple money concepts to their pupils.
Recent research from financial education programme Shares4Schools found that one in five teachers admit they aren’t “great with any personal finance issue”, while 81 per cent reckon that the current curriculum doesn’t adequately prepare young people for day-to-day challenges like managing your money and getting a job. Unsurprisingly, the teachers surveyed by Share4School demonstrated a better knowledge of products like debit cards and credit cards than savings and investments.
- YOUNG PEOPLE SAVE more than any other age group, according to research from pension firm Towers Watson, though their attitude towards workplace pensions remains a moot point.
The survey of 18 – 34 year olds found that they were saving the greatest percentage of their salary (10.9 per cent) out of any age group in the last year, while 44 per cent of 18 – 24 year olds and 39 per cent of 25 – 34 year olds prioritise saving (as opposed to 37 per cent of 35 – 44 year olds).
Fiona Matthews, managing director of Towers Watson Master Trust, said a tendency among young people to spend more, triggered by socio-economic factors like economic growth and greater access to cheap credit, may have reached its peak in the past few years. However, it is not known how much of this saving was done through workplace or private pensions; indeed, only 12 per cent of those surveyed said they felt informed about pensions.
- THE COST OF UNIVERSITY now requires parents to save up to £228.17 a month over from birth until the age of 18, analysis from an investment platform has found.
rPlan said the amount potentially needed in 2033 will rise to £74,307.08, based on current fees and living expenses being adjusted for 2 per cent annual inflation. Worringly, the survey found that parents who leave it too late will have to save far more – £735.82 a month over five years – to make up the shortfall. The figures were calculated based on a modest assumption of 4 per cent annual growth after charges.
- INTERGENERATIONAL CONFLICT – if it exists – should be ameliorated by the news that Britain’s over 50s are typically saving £56 a month for their grandchildren, amounting to £700 a year.
In the survey conducted by Saga, the most common reason for building up this kitty was university fees (chosen by 39 per cent of respondents) followed by school supplies (31 per cent) and a deposit for a future home (18 per cent). One in seven say they are saving up so their grandchild can buy a car.
Scotching the theory that babyboomers have jeopardised the future prosperity of young people, Jeff Bromage, chief operating officer at Saga Peronal Finance, described the over 50s as the “generous generation”.