Listen
Money skills for kids
04/12/2008
The ongoing international economic crisis underlines that it's crucial for Scotland's young people to develop financial skills and be confident in dealing with money, according to Schools and Skills Minister Maureen Watt.
The Minister is to give a keynote address at the Scottish Financial Education National Conference in Edinburgh today, which is organised by Learning and Teaching Scotland (LTS) and will be attended by 180 teachers, financial services sector representatives and others involved in promoting financial education in Scotland's schools.
Ms Watt said:
"At a time of global financial turbulence, with increasing costs of living and credit card debt soaring, it is all the more critical that children receive effective financial education early, so they can gain the key knowledge and skills that they will find invaluable throughout their lives.
"If Scotland is to realise its full economic potential in the future, we need a financially literate and astute population that is confident in dealing with money, able to make informed financial decisions and assess risks. We owe it to our young people to ensure that they have the chance to develop these skills early in life.
"The majority of Scots admit that their own education did not prepare them for dealing with personal finances, as shown by research from the Scottish Council Foundation. We must learn from this and ensure that the future generation are better prepared than the last.
"The Scottish Government has commissioned new research which will look at this more closely, assessing the extent and nature of financial education in schools and how it is being included within the curriculum. We plan to publish the findings of this research early next year.
"Throughout the school years we want all young people to learn about finances, from basic budget management skills and coin recognition through to the complexities involved in comparing and contrasting mortgages, pensions and other financial products.
"Through Curriculum for Excellence, Scotland's new approach to learning and teaching, there is a strong focus on improving literacy and numeracy skills, which are vital for developing pupils into financially responsible individuals."
Financial education takes place within a number of subjects, including mathematics, personal and social education, environmental studies, business education and home economics. Many schools supplement this learning through practical links with financial companies and business organisations.
Skills for Work qualifications, which are available to 14-16 year olds throughout Scotland following a successful two year pilot, include a qualification in financial services. Further finance-related subjects are also being developed as part of the review of National Qualifications.
The LTS Scottish Financial Education National Conference is taking place at Murrayfield Stadium in Edinburgh on December 4, 2008. As well as the speech from Ms Watt the conference will include speeches by Nick Prettejohn, Chief Executive of Prudential UK & Europe and Chris Pond, Director of Financial Capability at the Financial Services Authority.
In 2005 the Scottish Council Foundation, an independent think-tank, published the research report Thrifty Scots? Steps to Improve Financial Literacy. The research found that 59 per cent of Scots did not feel that their own education prepared them for dealing with personal finances.