New Lessons Teach Kids How To Be Cash Smart

Written By Unknown on Sabtu, 06 September 2014 | 23.17

By Becky Johnson, North of England Correspondent

They may have just returned from their summer holidays, but pupils in a classroom in Manchester are planning a trip to France.

Sadly for them, they're not about to be taken abroad on a school trip. In fact they're being asked to calculate the costs of a hypothetical visit as part of their new "financial numeracy" lessons.

The classes have been added to the syllabus at all maintained secondary schools in England from this term and are designed to help young people manage their money.

It follows a campaign by finance expert Martin Lewis who launched the website moneysavingexpert.com and believes we can all benefit from being more financially savvy.

Pupils will learn about interest rates, mortgages, credit cards and even payday loans as part of a drive to better prepare young people and prevent them falling into debt.

The lessons have been welcomed by the headteacher at Parrs Wood High School in Manchester, Andy Shakos.

Parrs Wood High School in Manchester Parrs Wood High School in Manchester has welcomed the move

He told Sky News: "Once upon a time when you were teaching this kind of topic it may have been for when you finally get your job and you settle down.

"Now our students see it as 'well, in two years I'll be going to university, I need to be able to have a hold on and understand of my accounts as soon as possible because if I don't I'm going to come out with a very big debt'."

Some pupils admitted they hadn't given much thought to how they'll manage financially in the future.

Emily Hoyle, who is in year 10, told Sky News: "I've kind of gone with the 'I'll cross that bridge when I come to it' ... I suppose I'll have to face it one day.

"If you're going to make a mistake it's obviously better to do it in a maths lesson than real life. So if you get that experience early it's obviously going to help you later on."

After calculating the cost of the trip to France, her classmate Joel Sheldrake added: "It's made me think that I want to keep lots of money in the bank or just save it somewhere so I can go off on big trips because they cost a lot of money."

Schools minister Nick Gibb said: "It is important that young people become familiar with how to manage their money, how to manage a bank account, the consequences of being in debt, how to manage debt, how to manage their savings, how to understand things like pensions and ISAs.

"They do need to understand the products and the consequences of being able to manage their own finances."


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