Financial education should be compulsory in schools

As parents wave goodbye to children heading to college or university this autumn, and students have to manage their finances independently for the first time, a new poll of 2,755 users of MoneySupermarket.com, has found that a resounding three quarters (74 per cent) of respondents support children receiving financial education on how to manage money at school. A further 22 per cent agreed that financial education is important with parents taking responsibility for their child learning about money.

For those parents who are concerned about boosting their child's knowledge of managing money, Kevin Mountford, head of banking at MoneySupermarket offers some basic tips:

Saving for a rainy day

"The earliest introduction most of us will have to managing money as a child is saving up birthday or pocket money. Putting money away for a rainy day or an emergency does not only encourage independence, but can be a vital lesson on the importance of saving, even just a small amount at a time, to build a substantial savings pot. With online access to many savings accounts, and apps available to track your money, the traditional passbook many people will remember from childhood may generally be a thing of the past, but it is even easier now to keep a close eye on your money."

Budgeting

"Getting children into the habit of budgeting is essential, especially before they leave school. Many teens have part time jobs in their final years of school and college, and for some, this could be the first time they experience regular payments into their bank account. By learning to put money aside or aiming for a savings goal, your child can understand the importance of balancing income, expenses and savings. Opting for a suitable easy access account such as the Post Office's Online Saver Issue 7 which offers a rate of 2.95 per cent but is also managed can help to get the most bang for their buck.

"Student current accounts are available for those 18 and over heading to university- but looking beyond the attractive freebies for an account with competitive rates is vital. Some providers offer free text alerts, such as Lloyds and Barclays, to help keep track on finances even on the move."

Borrow responsibly and watch out for avoidable charges

"On turning 18, students may be presented with attractive looking credit at their fingertips, including credit cards, store cards and authorised overdrafts. It's vital young people understand the charges and interest involved when using credit, and be aware of the costs incurred by going into an unauthorised overdraft, as the amount charges vary greatly across providers. Setting up a monthly direct debit will prevent charges for missing payments. Making a note in the diary will also help and the gentle reminder that as with any credit, it will have to be paid back eventually!"