IFA Compare Admin
The United Kingdom is facing a financial crisis and by this we do not mean the current economic down turn.
The financial crisis we are referring to is the complete lack of financial knowledge that children in the UK have.
The lack of financial knowledge children in the UK have is astounding and the fear held by the Government, financial industry leaders and parents is that this lack of knowledge will lead to a generation of adults whom are unable to manage their finances effectively
1 in 5 children are failing to meet the maths standards set by the Government and with this shockingly high failure rate there can be no doubt that as these children turn into adults their unease when it comes to financial matters will continue.
The lack of financial understanding that many of these children will carry into adulthood will potentially result in bad financial choices and for many financial hardship.
As adults we are forced to face many financial decisions such as which bank account to use, how much money to save, where to put our savings, which Mortgage would be best for us. Even for the most financial astute of us these decisions can be difficult, but without any financial understanding making the right decisions is almost impossible
The Government are already taking steps to try to solve this problem. Banks have committed resources to educating children by carrying out classroom workshops with them. However, the true responsibility for financially educating children will inevitably fall to their parents.
It is absolutely imperative that parents recognise the need to pass their financial knowledge to their children.
By encouraging children to take an interest in financial matters at an early age and slowly increasing their knowledge over time, we best prepare them to meet the financial challenges of the future.
Our country is currently facing a massive financial overhaul. Government spending cuts have been drastic, people are having to make huge financial sacrifices in order to make ends meet and it seems set to continue to some extent for years to come.
If as a society we fail to educate our children when it comes to financial matter, we risk the economic future of our country.
The fact is that if our children do not know how to handle their finances prudently then we set them up for failure and we set the country up for a future economic crisis
With the scope of the financial uncertainty that we all face it is easy to see why the financial education of our children is being forced to play a back seat, but there will come a time when this issue will be a time when our children are in the driving seat of this country’s economic health and unless we push this issue to the fore-front of our concerns now, we are heading for another economic collision.
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