Do you know about personal finance education? It is important as it is a planned programme of learning opportunities and experiences designed to increase the financial capability of all students from every social and cultural background.
Why is personal finance education important ?
Developing young people’s financial capability from an early age helps them to gain an understanding of money and to be better prepared to meet some of the risks they will encounter when they leave school. It can help them understand the advantages of saving and the risks of borrowing, as well as the costs they will face when studying or living on their own.
Personal finance education is particularly important in the current economic climate. Many of the young people interviewed as part of this research said that they are worried about the credit crunch and its impact on their lives, now and in the future. Many of the young people interviewed as part of this research said that they are worried about the credit crunch and its impact on their lives, now and in the future.
Many of them expressed concern about loans and credit cards and do not feel they can trust financial institutions, particularly banks. Personal finance education can help ease such fears. It can also enable students to develop not only an understanding and awareness of money but also the skills, critical judgement and resolve to manage money more effectively.
What impact can personal finance education lessons have on students ?
The personal finance education lessons can have very positive impacts on students’ attitudes towards finance and knowledge of financial matters. In particular, interviews conducted with students before and after receiving personal finance education lessons showed that such lessons can make a significant difference to their attitudes towards saving and borrowing and can make them feel more confident about managing their own money. The research also suggests that having such lessons makes students more positive about being taught about personal finance at school and not just relying on what they pick up from their parents, friends or relatives, or get told by the media.
It is important that schools designate at least one teacher in every school who has received some training in teaching financial capability and has responsibility for planning and coordinating the delivery of personal finance education.
Students are more likely to be engaged in learning about personal finance education if they are taught in an interactive way, for example through group work and drawing on students’ own experiences and views. USe quizzes to raise awareness, competitions, making posters and organising debates. Schools generally find that it is difficult to keep students engaged if they are taught a lot of knowledge and facts in a formal way.
Key success factors in planning and delivering effective personal finance education lessons
There’s many key succes to deliver effective personal finance education lessons such as :-
1. Give one person ownership of planning and coordinating the delivery of personal finance education lessons
2. Ensure the school senior management team (SMT) is fully supportive of personal finance education
3. Personal finance education is most effective when sufficient curriculum time is made available for it to be taught as stand-alone lessons, rather than just embedded across the curriculum.
4. Choose knowledgeable and committed teachers to deliver personal finance education lessons
5. Use effective classroom management skills in lessons to make students feel safe.
6. Use assessment approaches that help students develop their knowledge and skills