FSA: Financial sense should be taught in school

26 April 2006
The Financial Services Authority (FSA) has urged schools to introduce classes top help people understand how to manage their finances at an early age.

With overspending on credit cards and assumption of debt beyond people's individual means now rife in the UK, the FSA believes that to prevent this we should be teaching people how to be more financially savvy and aware of the consequences of debt earlier.

"It is hoped financial education is something that can be added to a social skills lesson," commented Abi Jones, a spokesperson for the FSA.

Ms Jones also said that it was a case of teaching people "a life skill" rather than simple arithmetic, to prevent them getting into problems when they are older.

"This could provide something they can take away with them, not just a maths lesson," she continued. "We want people to realise this is not just a personal finance thing but the wider aspect of having something to eat and money to spend."

Analysts have questioned the validity of teaching too much, too soon, which they say might put people off dealing with finances for life, but it is widely acknowledged that it is a problem that should be dealt with too soon, rather than too late.

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