More than six in 10 UK secondary school teachers believe today’s young people leave school with a poor level of financial skills and 59% say their pupils don’t understand what a credit score is. The latest research from information and insights company TransUnion shows two thirds (66%) of teachers think financial education has stalled as a result of the pandemic.
Nearly three quarters of teachers surveyed say their pupils struggle to understand the importance of personal budgeting, saving, money management and calculating interest. The majority believe a lack of real-life experience for students, such as having a part-time job outside school and handling money regularly, has had the biggest impact.
Over half think the lack of understanding is because core subjects had to take precedence over financial education, with students now lacking knowledge on how to budget and manage money.
Kelli Fielding, managing director of consumer interactive at TransUnion in the UK said: “Following the serious disruption to learning caused by the pandemic, teachers are now dealing with the challenge of rebuilding financial education in schools and tackling persistent gaps in money knowledge which can put today’s young people at a real disadvantage. With the ongoing cost of living crisis, it’s essential to give students the skills to manage money before they leave school.”
Almost half of teachers say their students would lack understanding on building a credit profile, whilst more than four in 10 say their pupils wouldn’t know the difference between a credit and debit card. To support schools in improving financial knowledge for young people – aligned to personal, social, health and economic (PHSE) education frameworks – TransUnion is launching a new free online teaching resource.
Credit Scores Explained aims to give secondary school students the best start to their financial life, helping them learn about managing money and understanding from an early age the role that their credit report and score will play.
Kelli Fielding adds: “We want to advance the financial inclusion of the UK’s young adults by ensuring school leavers have the knowledge to make informed choices when the time comes to manage their own money. Understanding credit information and the role it plays in day-to-day life is an important part of that.”
You can check your TransUnion credit report and score for free with Credit Karma, Credit Monitor from MoneySuperMarket, or TotallyMoney.
