As this report from the Joseph Rowntree Foundation shows, financial literacy and low financial confidence are impacting our society now and unless we do something to improve this, this will continue to impact individuals, families, workplaces and society as a whole in years to come.
Also, our recent financial wellbeing research in conjunction with the CIPD, indicates 25% of employees of all ages and all wealth levels worry about money to the extent that it affects their ability to do their job. Difficulty interpreting financial jargon, a lack of financial awareness and confidence are all cited as causes.
Helping to raise financial awareness from an early age will give our young people the tools to last a lifetime and will empower future generations of workers to be more confident about money, benefitting them each individually, their employer's business and society as a while.
In a world where we’ve seen increasing economic pressures and uncertainty, teaching young people financial responsibility is crucial.
It is never too early or too late to start helping people to learn about getting more from their money. Financial education provides a solution and introducing it to the workplace or in schools is not long winded or complicated.
Last week the Joseph Rowntree Foundation released a report, Monitoring Poverty and Social Exclusion 2016, which revealed that more than seven million people in the UK are living in poverty, despite being part of a working family. Among the identifiable factors behind these figures were the rising costs of private renting, stagnating wages and cuts to benefits, with Helen Barnard, head of analysis at the foundation saying that ‘the economy is not working for low-income families’. As a financial education charity, we would offer another important factor – stubbornly low levels of financial literacy, which affect families from across every social stratum. The effects of this are all around us, from spiralling personal debt to falling savings levels. In the worst cases, it can lead to complete financial exclusion.