MPs call for financial education

A report recommending financial education in the classroom has been put in front of MPs today.

The Financial Education and the Curriculum report, put together by the all-party parliamentary group on financial education for young people, says teaching personal finance in schools would help resolve personal insolvency problems and the debt crises.

The report highlights that two-thirds of people are too confused to make money decisions, while more than one-third do not feel they are able to manage their cash.

It says primary school teachers should provide basic money lessons, while secondary schools should see financial maths and its applications taught.

"These proposals are modest and reflect the views that have been so broadly and swiftly confirmed in the petition, which has now attracted over 113,000 signatures. They are also a reasonable fit with the overall Government strategy," said Gavin Oldham, chief executive of The Share Centre.

"We would also hope to see the Money Advice Service making a proposal to the FSA to increase its levy on financial service firms from £65m per year to £75m per year. This is a modest increase, which we feel the majority of companies in the sector would be willing to accept, and the additional £10m could fund the proper provision of financial education in schools."

Oldham says the milestone is hugely significant to improving the financial capability of the future generation in the UK and that having more capable young people coming out of the education system will result in a more balanced approach to regulation in the future.

"It is very much in the interest of the financial services industry to serve better informed investors and customers and we would welcome proposals for more industry-based funding to make financial education in schools a reality."