Parents want early financial education for children

Many parents are keen for their children to start learning about money early in life, new research has found.

According to Yorkshire Building Society, a fifth (20%) of parents with children aged five to 17 think money management should be taught before the age of five.

Meanwhile, over a quarter (27%) would like it to begin between the ages of five and seven. 

Significantly, many aren’t waiting around for schools to teach them good financial habits.

Nearly eight in ten (78%) give their children money, either as pocket money or in return for chores.

In addition, almost two-thirds (65%) have opened a bank account for their child.

“It’s incredibly encouraging to see so many parents taking proactive steps - opening bank accounts, setting savings goals, and starting conversations about money early,” said Pete Lewis, senior savings manager at Yorkshire Building Society.

“These small actions lay the foundation for lifelong financial confidence and show just how deeply parents care about giving their children the best possible start.”

What financial education do children get?

Since 2014, financial education has been on the national curriculum for local authority-run secondary schools, with the subject covered in citizenship lessons.

However, academies and free schools can opt out, and financial education isn’t on the curriculum in primary schools at all.

What do parents want for their children?

Interestingly, many parents are feeling anxious about their children’s financial futures, which might explain why some are so keen to teach them good habits early.

More than a quarter (27.2%) said they’re “very worried” that their kids will face more financial challenges than they did at the same age.

And nearly half (48%) said they’re concerned that their kids won’t be able to get on the property ladder.

In fact, this was the fear most raised by parents, ahead of:

• job insecurity - 42%
• wages falling behind the cost of living - 38%
• rising debt - 34%

“As parents, we want the best for our children,” Mr Lewis said.

“We hope they’ll have a home they feel safe in, the ability to choose a job they love, and the confidence to manage whatever life throws at them. 

“But behind those dreams is a quiet fear: that rising costs, economic uncertainty, and a lack of support will make their path harder than ours was.”

Why financial education is needed

Money Wellness has long argued that financial education in schools needs to improve, as it can help people manage their money, make informed decisions and plan for a secure future. 

Having a greater understanding of money-related concepts, such as budgeting, saving and debt management, also helps people make better choices and achieve their financial goals. 

And at a time when money-related products seem to be getting more varied and complex, financial literacy is becoming an increasingly crucial skill to possess.