When Did You Start Your Financial Education?

January 29, 2009   2 Comments   education

Personal financial management is a topic that sounds scary, but it really isn’t – it’s about understanding where your money goes, and learning how to plan where it should go. The earlier you start your education, the better position you will be to reach your financial goals, thanks primarily to compound interest and financial planning. By starting your financial education early, you’re able to learn good habits to make sure that you carry your financial management skills and tactics well into your adult years.

Unfortunately, this isn’t a topic that is a mandatory part of high-school education even though it should be. A recent study by the University of Manchester found that:

standalone financial education qualifications can dramatically improve individuals knowledge, skills and confidence in financial matters and that long lasting behavioural change can be achieved as a result.

The study also found that:

A specifically designated and substantial qualification is effective in changing young peoples financial behaviour (this contrasts with the Government approach of thinly spreading financial education across the curriculum in a variety of subjects).

Personal financial management education is effective when provided at a time when young people are experiencing the transition towards greater independence and adulthood (this contrasts with the approach of many who believe that early years and a focus on primary school children is appropriate).

Approximately 95% of students reported understanding money matters after taking the course and high levels of knowledge and financial awareness continued to be reported at both the 10 and 22 month follow up periods (FSA research published in July 2008 suggested there was no evidence that other forms of financial education produced lasting improvements).

Students confidence greatly increased e.g. confidence to go to a bank and discuss financial matters, greater confidence in how to research financial options and products and so on

So for the parents out there, the question isn’t “Do I teach my kids about financial management?”, instead it should be “When should I teach my kids about financial management?”.

If you haven’t started the journey yet, maybe you should today.

Related posts:

1. Parents relying on kids to pay their way There is a
2. Financial Education in the School System Image
3. Virginia Public Schools Must Offer Personal Financial Management by 2010 I just saw
4. What Can Isla Fisher, Joan Cusack, John Goodman, and Krysten Ritter Teach You About Financial Management? On Sunday

Tags: childhood learning, education, personal financial management

2 Responses to “When Did You Start Your Financial Education?”

1. sammy says:

   January 31, 2009 at 11:58 pm

   Agreed. The earlier you start money ed, the better and less scary. Keep up the great work.
   Sammy
   http://www.itsahabit.com
   http://www.sammyrabbitblog.com
   Changing lives one dime at a time!

   Reply
2. Adam says:

   February 1, 2009 at 10:28 pm

   Thanks Sammy!

   Reply