MPs back calls for financial education in schools

Two local MPs voice support for the All Party Parliamentary Group on Financial Education for Young People

BANKING, budgets and debt should all be taught in classrooms, according to the MP for Newbury, Richard Benyon and MP for North West Hampshire, Sir George Young.

Mr Benyon has backed an all-party Parliamentary group, formed on the back of the financial crisis and rise in tuition fees, which aims to get debt management on the curriculum.

The All Party Parliamentary Group (APPG) on Financial Education for Young People launched last week, and is hoped to be a new power pushing financial education up the agenda.

“I have called for a long time for greater economic literacy for children as well as adults,” Mr Benyon said.

I have spoke at the Citizens Advice Bureau Annual Meeting in 2006 in which I challenged them to try and head off problems of debt by going into schools and I applaud them for their work locally. It is something I have been very involved in since.”

He said that representatives from large banks had been going into schools to speak to pupils and explain terms such as APR, and how to plan budgets.

“It's really important that young people in schools have these issues to explained to them, and how they need to deal with personal finances,” he said.

Mr Benyon said that as a minister he was forbidden from joining the all-party Parliamentary group, but if he was not on the front bench he would be the first to put his name down.

Sir George attended the launch of the group.

He said: “I believe that it is now more important than ever that we bring up a generation of financially literate young people, who are able to deal with the financial challenges they will face as adults, whether it's choosing financial products or planning for a secure financial future.

“Beyond school, better financial education will enable individuals to have greater personal responsibility for their finances.“

The chairman of the APPG is Justin Tomlinson MP, and it is backed by PFEG (Personal Finance Education Group) and www.moneysavingexpert.com

Martin Lewis, creator of MoneySavingExpert.com said: “It's a national disgrace that in the 20 years since student loans launched we've educated our youth into debt, but never about debt. Now as tuition fees are getting bigger and some will pay commercial rates of interest for them, we simply can't let students take this debt out unless they know how it works.”