NEWS...
Financial Education
Over the past twenty years, debt levels in the UK have soared. Total debt in the UK currently exceeds £1.4 trillion, and it is accelerating, having increased 9.3% in the last year alone. The average UK household debt now stands at more than £56,000.
While it is often easier to blame someone else for our debt problems, taking responsibility for our overspending is the first step in actually correcting the trend.
While some debt defaults are unforeseen, other instances occur because poor choices have been made about how to make use of credit over the long run. UK culture sees cheap, easy access to credit as a way of life and seems less able to come to terms with the fact that people still need to live in ways that are consistent with their means.
One solution to this mounting debt crisis is to teach people how to manage their finances better, and an obvious starting point for this is to improve the effectiveness and reach of the financial education in our schools.
This September marks the Government's deadline on schools to introduce financial education into their curricula, yet existing efforts at implementation seem to be falling short and are being met with apathy from school administrators.
Whilst industry recognises that the Government and Education boards must rise to this challenge, we can and should take a concerted and coordinated position as an industry as well in order to help young people better understand their finances.
Our results to date have helped those involved but have been limited by the scope and resources able to be committed.
As both a school governor and active campaigner around the need for financial education, I have seen few who support the initiatives and dedicate their personal time to it. There only seems to be apathy when it comes to actually getting the schools to participate.
To date the various local education authorities and Government bodies don't seem to be talking with those of us in the credit industry who are ready and willing to help in this crisis. We need to find a collaborative approach to financial education and implement it quickly using consumers, businesses, schools, government, and media channels to spread the message widely and clearly.
Early in 2007, the Association of Credit Professionals committed its support to the Debtcred initiative, which is the High Sheriff's financial literacy project and the ACP-DebtCred Finance for Schools Initiative was launched.
Credit professionals volunteer to attend a two day training workshop focused on delivering financial education presentations to schools. In their own time, they then liaise with the schools to organise formal sessions on financial education for the school's children.
The need for financial education is of paramount importance. Learning how to live within your means (which does include healthy levels of debt) is one of the cornerstones of a happy adulthood.
Introducing better educational initiatives in school will help prepare the next generation for responsible money management. Ultimately, it would be best if these initiatives could be reinforced at home by parents who demonstrate responsible financial management themselves.
If you are interested in becoming involved and feel that teaching our children how to better manage their money then please get in contact with me and you too can join our campaign.
by Teresa Callaghan, Business Development Director, Transcom UK (www.transcom.com)
Member of the Board, ACP (Financial Education)
Email: ukenquiries@transcom.com
Original article courtesy of CSA. For further information visit www.csa-uk.com.
