Government pledges money to financial education

The government has pledged £11.5 million to improving financial education in schools.

With the first children to benefit from child trust funds (CTF) entering school this September, the new financial boost will help tech children about basic financial concepts, knowledge that could help them live a debt free life.

Matters such as opening a bank account will also be addressed, with the CTFs a starting point for educating the children.

“Children need to understand the value of money and how to interact with financial service providers to provide for their own futures,” Treasury minister Kitty Ussher said.

She added that such understanding is a “key life skill” and something that will better equip the children “to avoid financial problems in later life”, such as needing debt management help.

Last month, ifs School of Finance called for more financial education to ensure people can make “informed financial decisions” and avoid insolvency.