Since 2000, the Personal Finance Education Group (Pfeg) has been calling for personal finance to be taught in schools. Pfeg recently won a major victory when the government agreed to put personal finance education on the curriculum for secondary schools from September 2014. Teenagers will be taught about the dangers of debt and the importance of pensions and savings in maths and citizenship lessons.
However, Pfeg says it will continue lobbying for personal finance education to be put on the national curriculum for primary schools. Unfortunately, any success in this area will be too late for many Investors Chronicle readers' children and grandchildren.
Research from the Money Advice Service found earlier this year that money attitudes are set by the age of seven. The government-backed organisation urged parents not to "underestimate the effect their own good (and bad) money habits will have on their children". David Whitebread of Cambridge University, a co-author of the study, said: "The 'habits of mind' which influence the ways children approach complex problems and decisions, including financial ones, are largely determined in the first few years of life. Simply imparting information is now recognised as being ineffective in this area.
"By contrast, early experiences provided by parents, caregivers and teachers, which support children in learning how to plan ahead, in being reflective in their thinking and in being able to regulate their emotions, can make a huge difference in promoting beneficial financial behaviour."
I've taken this on board - perhaps more seriously than most, because of my position as a personal finance journalist. Here's an example of life in the O'Neill household.
My seven-year-old daughter recently asked me to buy her a Quiver the Emperor Penguin soft toy. These 'blue nose' toys are fashionable at her primary school. It cost £4.50.
My answer: you can save up for that out of your pocket money. She gets £2 a week - well short of the national average of £6.50 a week for 8-15 year olds (source: Halifax Pocket Money Survey) - so it took her three weeks to save enough to buy the toy. It then took a week for it to arrive in the post. Over this four-week period, she talked most days about how much she wanted it and the games she was going to play when it arrived. As a result, I'm pleased to report that she loves the toy and has played with it continuously for the past week.
As a parent, I am trying very hard to give her good attitudes to money - to understand the value of saving up for a special purchase. If you are doing something similar in your household or remember how your own parents taught you about the value of money, then I would love to hear about it. Email me at moira.oneill@ft.com
