Parents worried children will get into debt

Parents and teachers are worried about the level of financial awareness children have, according to research from Nationwide.

Nationwide wants children to leave school with a financial understanding that will hold them in good stead in later life and has launched a financial capability programme accessed through its Nationwide Education website (nationwideeducation.co.uk).

The research reveals:

Three fifths (62%) of parents with children aged between four and seven, are concerned their child will get into debt through making financial mistakes when they are older;

A fifth (18%) of parents and teachers think their children and pupils do not know anything at all about understanding money and how to manage it;

91% of parents and teachers think it's important children learn how to manage money and budget from a young age;

Less than half (49%) of parents and teachers questioned, think they know a lot about managing and budgeting money themselves;

Additionally, just a fifth (22%) of parents and teachers think they have everything they need to teach children about money;

Two thirds (66%) of parents and teachers wish they had had the benefit of more financial education as a child;

87% of parents and teachers thought that Nationwide education's website would be a useful tool for them with three quarters (74%) thinking that they would be likely to use the site.

It is particularly concerning that:

Only two in ten (21%) of parents and teachers frequently talk to their children or pupils about money;

Only one third (36%) of teachers think they have enough tools to support teaching pupils about understanding money and how to manage it;

Only 22% are very confident about teaching their pupils or children about managing their money;

Over a fifth (21%) of children aged four to seven years old do not have a savings account, which can act as a great tool for bringing money management to life.

Nationwide's financial capability programme is supported by the Chair of the House of Commons Education and Skills Select committee, Barry Sheerman, MP. It is being rolled out to all primary schools across the UK this autumn. Phases for secondary schools will be delivered in January 2009 and September 2009. Nationwide Education is unique in utilising the new interactive whiteboard technology in schools, as well as PCs in schools and at home. It has been designed to:

provide interactive activities, games, downloadable fact sheets and curriculum-linked work sheets;

provide tailored, informative content for teachers, students and parents;

complement the National Curriculum;

accommodate a range of age groups, from foundation years through to university;

give accessibility to those in wheelchairs or with visual or hearing impairments.

Tony Prestedge, executive director at Nationwide, says: "We are very excited about this project. Our research shows that much more needs to be done to help teach children about money. As a mutual organisation, we want to see children of all ages leaving school with the tools and the knowledge to help them make sound financial decisions. We are completely committed to financial education and we're looking forward to developing the future phases of Nationwide Education.

"We are also delighted our venture has secured the support of the Chair of the Education and Skills Select Committee. We know it is one of the Government's targets to engage children in financial learning and to encourage saving and our tool will definitely assist teachers in achieving this standard. We really do want to help young people learn about money and we look forward to providing them with the means to achieve this."

Barry Sheerman MP, Chair of the Children, Schools and Families Select Committee, also comments: "I welcome and support Nationwide's move into the financial educational sector. It is encouraging that a financial institution is prepared to share its knowledge and know-how with children, schools and parents, about how to make the most of their money.

"Too many people are unsure about key financial issues in their lives and I want to see this change. In the ever-changing economic world which we live in, it's important that people understand how to make the most of their money when things are going well and understand how to prevent getting into financial difficulties when things take a turn for the worse."