Finance education could reap rewards

According to the Institute for Public Policy Research (ippr), adults aged between 35 and 49 who had financial education at school better managed their debts and were £32,000 richer than their peers.

“It pays to get clued up,” said ippr senior research fellow Miranda Lewis. “Lessons that teach young people the basics of personal finance, like how to calculate interest, household budgeting and understanding mortgages, can help them make the right financial decisions later in life and avoid debt problems.”

Evidence for the financial benefits comes from the US where children are often taught basic financial skills about budgeting and debt.

Couples with two young children were found to be the best off for receiving education but both childless couples and singletons were found to benefit from good monetary knowledge.

Last year it was announced that GCSE maths will contain financial education to help the next generation.