The next generation risks being “unprepared to manage their finances” without proper financial education, according to the head of a NGO dedicated to helping young people across Europe.
Salvatore Nigro, the chief executive of JA Europe, said young people today face ongoing economic uncertainty which makes it “crucial” to equip them with the knowledge and tools to make informed financial decisions so they can avoid making mistakes that could hinder their adult lives before they even begin.
He added although financial education is increasingly recognised as a fundamental life skill, there is limited public funding for it.
“Young people struggle to make informed financial decisions, often lacking access to the necessary trusted resources and networks,” he said.
Nigro also pointed out this was a particular problem for young people from lower socio-economic backgrounds.
This is because the challenges of seeking financial education online are even greater due to increased financial pressures and limited guidance in schools and communities.
His comments come after a report by UK Finance revealed the financial services sector is the biggest funder of financial education, voluntarily contributing 80 per cent of total funding.
In 2023, the industry provided financial education lessons to more than 4mn children and young people, focused support to over 83,000 vulnerable children; and engaged with over 25,000 schools.
Eric Leenders, managing director of personal finance at UK Finance, said: "The financial services industry voluntarily delivers financial education to millions across the UK, but to build the foundations for lasting financial capability and inclusion we need more substantial financial education planning and funding from government.
"We are calling for the subject to be fully integrated into the national curriculum by making the lessons mandatory for all schools."
Reform
Nigro backed the call from UK Finance for financial education to be integrated it into the national curriculum for all age levels.
“This education should be delivered in a real-world context to ensure it is engaging and practical for students,” he stated.
However, he acknowledged schools and educators cannot do this alone.
Nigro added: “They need principles and guidelines, as we have seen in the recently approved guidelines in Italy, stressing the importance of financial education as part of civic education.
“Education inspection boards and initiatives for teachers should be funded to oversee financial education provision and ensure standards are maintained.”
Nigro said centralising and guaranteeing the delivery of financial education in schools will “significantly support” underserved children from lower socio-economic backgrounds, helping them “break the cycle and succeed in their futures”.
tom.dunstan@ft.com
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