Teaching basic cashflow & budgeting to school kids
Teaching basic cashflow & budgeting to school kids
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Welshbeef

Original Poster:

49,633 posts

228 months

Friday 12th September 2008
quotequote all
When will the Govt bring this in so that there is a GCSE purely on this - it would benefit the next generation so much bringing them a mindset to plan ahead as much as is possible not spend beyond their means and to save up for things they want to buy.

Understand how HP's, PCP, Loans, Mortgages work & even get as detailed as understanding the tax saving possibilties of the offset account vs normal mortgages & savings.

I'm very sure there is easily enough content for a full GCSE - Im sure this measure would bring a bigger respect to £ and to encourage those who live in areas where generations have lived on the dole to get up and earn to save to buy nice things they want to have pride. To stand on their own two feet not let every other worker pay for them to live/well watch sky all day long drinking sh^t cheap cider & smoking while eating £0.16 Tesco basic fish fingers.


Another GCSE I would like to see would be basic car servicing, not compulsory but this skill I would imagine would increase the overall car safety on the UK roads & reduce traffic deaths.

ASBO

26,140 posts

244 months

Friday 12th September 2008
quotequote all
What a cracking idea that would be. Obviously the govt will never introduce it then rolleyes

At 25 I'm still learning how best to manage my money as it just seems to 'disapear'.

Learning how to manage money at an early age would ahve saved me £££££'s.

Mr POD

5,153 posts

222 months

Friday 12th September 2008
quotequote all
That any self respecting parent would not teach their kids the importance of budgetting.

I learnt by going youth hostelling at 14 with just enough money for a week, and not running out.

Welshbeef

Original Poster:

49,633 posts

228 months

Friday 12th September 2008
quotequote all
Mr POD said:
That any self respecting parent would not teach their kids the importance of budgetting.

I learnt by going youth hostelling at 14 with just enough money for a week, and not running out.
Thing is there are countless Hapless parents who dont have a clue about budgeting & cashflow.
Did your parents go into mortgages/loan/HP/PCP/Tax efficient savings/Mortgage offset accounts/Annuities/Pensions/ SAYE / SIP/Guilts/bonds / Equity / Unit tursts / OEIC - open ended investment companies?
Mine were pretty hot on it but even so ISAs were all that was taught as they always paid cash excl mortgage so laons was totally alien to them.


Digga

48,439 posts

313 months

Friday 12th September 2008
quotequote all
All cashflow and budgeting is is applied maths. Surely to God it could be incorporated into the sylabus as it is?

minimax

11,985 posts

286 months

Friday 12th September 2008
quotequote all
Welshbeef said:
Mr POD said:
That any self respecting parent would not teach their kids the importance of budgetting.

I learnt by going youth hostelling at 14 with just enough money for a week, and not running out.
Thing is there are countless Hapless parents who dont have a clue about budgeting & cashflow.
Did your parents go into mortgages/loan/HP/PCP/Tax efficient savings/Mortgage offset accounts/Annuities/Pensions/ SAYE / SIP/Guilts/bonds / Equity / Unit tursts / OEIC - open ended investment companies?
Mine were pretty hot on it but even so ISAs were all that was taught as they always paid cash excl mortgage so laons was totally alien to them.
I always think that everyone should be taught the level 1 exam of my financial paper smile

it just explains everything that you mention above.. ISA OEIC's etc smile

AndyAudi

4,017 posts

252 months

Friday 12th September 2008
quotequote all
Trouble with a GCSE or equiv is not everyone would take it, better to cover in personal & social development or similar subject.

I was amazed to learn recently that parents i know with kids at uni are finding it necessary to give them a weekly allowance as they are incapable of handling their money on a monthly basis.

Skipppy

1,136 posts

240 months

Friday 12th September 2008
quotequote all
Great idea!

It probably won't work.

The reason - Envy and jealousy.

That said, i cannot see anyone below the age of 25 getting credit in future on the back of the current state of affairs...

Actually, that is quite a good thing, it will teach everyone that they HAVE to work for what they want.

MY GOD, WE COULD ACTUALLY TURN THE COUNTRY AROUND!!

hehe

Mr Will

13,719 posts

236 months

Friday 12th September 2008
quotequote all
AndyAudi said:
I was amazed to learn recently that parents i know with kids at uni are finding it necessary to give them a weekly allowance as they are incapable of handling their money on a monthly basis.
That is more a case of parents not knowing how to say 'No'

They will only cock up a monthly allowance a couple of times if the bank of mum and dad only sends frozen dinners, rather than more cash, when they run out.

Welshbeef

Original Poster:

49,633 posts

228 months

Friday 12th September 2008
quotequote all
Skipppy said:
Great idea!

MY GOD, WE COULD ACTUALLY TURN THE COUNTRY AROUND!!

hehe
If my plans came into action within 10 years we'd have a whole generation of now young adults who's financail awareness would be vastly improved 2018 thats not far away I'd say it would certainly benefit the UK culture, its too late to try to change people who are too old to listen to others advice so given that start a fresh.


plasticpig

12,932 posts

255 months

Friday 12th September 2008
quotequote all
I think its a terrible idea. Think of all the people who would be put out of work in the debt consolidation / loan shark business. There is quite a big industry built on making money out of people who cant manage their finances.


Mr POD

5,153 posts

222 months

Friday 12th September 2008
quotequote all
Welshbeef said:
Mr POD said:
That any self respecting parent would not teach their kids the importance of budgetting.

I learnt by going youth hostelling at 14 with just enough money for a week, and not running out.
Thing is there are countless Hapless parents who dont have a clue about budgeting & cashflow.
Did your parents go into mortgages/loan/HP/PCP/Tax efficient savings/Mortgage offset accounts/Annuities/Pensions/ SAYE / SIP/Guilts/bonds / Equity / Unit tursts / OEIC - open ended investment companies?
Mine were pretty hot on it but even so ISAs were all that was taught as they always paid cash excl mortgage so laons was totally alien to them.
Actually I have no idea about half of that. It not kids that need the training !!!

LadyHayles

1,113 posts

219 months

Friday 12th September 2008
quotequote all
I work for a national firm of insolvency practitioners (we deal with bankruptcies, liquidations etc) and I think it would be a good idea to teach kids how to manage money.

The amount of numpties I deal with day in, day out who have absolutely no idea of how to stick to a basic budget and have tens of thousands of pounds owing on credit cards which is basically down to living beyond their means.

I also think that people who want to be Company Directors should have to pass a basic course on how to run a business first too - the pathetic excuses you from people when they have completely screwed their business over is ridiculous.

To be fair I don't think I'm ever likely to be out of a job even if people were taught this basic skill but at times like this I wouldn't be so busy and I could leave the office at a respectable time!

chris_w666

22,655 posts

229 months

Friday 12th September 2008
quotequote all
I think the main problem is that unless you have a teacher who happened to first do a degree in economics (Like my sister in law), the current generation of young adults would only make a half stab at teaching this stuff.

That isn't a pop at teachers but anything like this would be tagged onto what they have to do already. I have looked at various ways of doing this kind of teaching and some schemes have been developed by examining bodies and the some banks. These schemes are designed to be used with young people to explain thinks such as Interest, Borrowing, Investments and Savings, Bank Accounts, Their rights in law, Personal Budgeting, How a pay slip is written, 'Benefits', Debt, and generally a ton of useful stuff.

I have 2 slightly different versions of these courses but the amount of teenagers we can get the information to is limited. Schools don't seem interested in investing any money in non GCSE subjects and its a bugger to commit staff to an unfunded project.

But at least the outlines of what the OP suggested exist. If anyone would like to discuss this stuff with me send me a PM.

Edited by chris_w666 on Friday 12th September 14:39

Welshbeef

Original Poster:

49,633 posts

228 months

Friday 12th September 2008
quotequote all
Mr POD said:
Welshbeef said:
Mr POD said:
That any self respecting parent would not teach their kids the importance of budgetting.

I learnt by going youth hostelling at 14 with just enough money for a week, and not running out.
Thing is there are countless Hapless parents who dont have a clue about budgeting & cashflow.
Did your parents go into mortgages/loan/HP/PCP/Tax efficient savings/Mortgage offset accounts/Annuities/Pensions/ SAYE / SIP/Guilts/bonds / Equity / Unit tursts / OEIC - open ended investment companies?
Mine were pretty hot on it but even so ISAs were all that was taught as they always paid cash excl mortgage so laons was totally alien to them.
Actually I have no idea about half of that. It not kids that need the training !!!
You pulling my leg ? (seriously?)
I take it your >18y.o. in which case everything in that list applies to you - although some may not be until you retire but that aside you really should have knowledge of them and what they are used for - if you dont then you could be making incorrect financial decisions.



Also to add credit cards - how to use when to use etc. For me everything should be bought on creditcard total piece of mind purchases but pay it all off every month.

Swillsy

181 posts

217 months

Friday 12th September 2008
quotequote all
I think its a great idea and something people would actually pick up on and remember.

I think the opposite it of 'omgz loads of peeps in debt consolidation' because I think that people would start to see past the 'free money' adverts shown on day time tv.

Simpo Two

92,956 posts

295 months

Friday 12th September 2008
quotequote all
Right, so far the PH syllabus looks like this:

Spelling
Grammar
Finance
First aid

What shall we teach them in the afternoon?

xiphias

5,889 posts

257 months

Friday 12th September 2008
quotequote all
Why don't we just start with:

Money out is less than money in. Repeat till fade.

Swillsy

181 posts

217 months

Friday 12th September 2008
quotequote all
Simpo Two said:
Right, so far the PH syllabus looks like this:

Spelling
Grammar
Finance
First aid

What shall we teach them in the afternoon?
driving ofc:P

Simpo Two

92,956 posts

295 months

Friday 12th September 2008
quotequote all
Welshbeef said:
Thing is there are countless Hapless parents who dont have a clue about budgeting & cashflow.
Did your parents go into mortgages/loan/HP/PCP/Tax efficient savings/Mortgage offset accounts/Annuities/Pensions/ SAYE / SIP/Guilts/bonds / Equity / Unit tursts / OEIC - open ended investment companies?
TBF that's pretty silly for schoolkids. What the OP meant was the simple concept that if Peter has 100 pennies, and he spends them all, then Peter doesn't get any sweets or mobile phone time. Value of money, saving up, that's all.