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How the Education System can Benefit from Teaching Students About Wealth Management

Jun 13, 2018 by

In the UK (and indeed the whole of the Western world), there’s little doubt that the national curriculum has failed to keep pace with rate of social, technological and economic evolution that has taken place in the last two decades.

It was thought that the British government had at least taken some steps to correcting this back in September 2013, however, as it was at this time that the Tories made the teaching of financial education mandatory in all state secondary schools.

New research suggests that just 58% of students aged between 15 and 18 have received any form of financial education since this time, however, with many teachers citing a lack of expertise on the subject as a core issue.

This is a shame for both students and the education system as a whole, as it’s clear that the latter would benefit by teaching an effective finance education program. Here’s how:

From Personal Finance to Wealth Management – The Benefits of Financial Education

The responsibility for financial education is a source of much debate, of course, as many believe that parents should shoulder much of the burden. This represents flawed logic, however, with figures in the U.S. suggesting that just 41% of adults have enough savings to cover a $500 or $1000 emergency.

While schools may have accepted the responsibility for teaching financial education, however, they’re clearly failing to deliver in this respect. This is preventing the modern education system from producing fully-functioning and financially literate adults, who are capable of managing their capital and achieving security later in life.

From a long-term perspective, this could potentially reduced investment in state schools, as public finances continue to be stretched across healthcare, pensions and education. So, if an entire generation lacks the ability to manage their finances or save towards their retirement, they’re likely to rely solely on state provisions later in life and create a scenario where the education sector has even less resources.

The Last Word

In many ways, teaching basic financial education in state schools was only supposed to be the beginning, as the curriculum should also have evolved further to cover more in-depth subject matter pertaining to investments and wealth management.

This would also help to create more relevant job skills among the next generation of adults, with wealth management continued to emerge as one of the biggest growth markets in the financial sector.

For now, however, the government must assess the failure of its mandated financial education programs and look to redress this as a matter of urgency. If not, it could have implications for both an entire generation of students and the educational as a whole.

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