Europe UK (Commonwealth Union) – The lack of financial education among the public is what many financial experts have stated that leads to many families to struggle financially. The knowledge of how money works and how to invest money is an area many financial experts have emphasized is essential for individuals achieve financial stability.
A study conducted by the University College London (UCL) of over 3700 families across the UK has noticed a huge gap in the financial knowledge of children according to their socio-economic group.
The study, British Journal of Educational Studies, made use of a nationally representative data sample that was taken from the 2019 Children as well as the Young People’s Financial Capability Survey. The measurements were conducted on the financial abilities and behaviors among Britain’s 7 – 17-year-olds.
Elaborating further on the study, researchers are presently emphasizing for a stronger emphasis on the formation of financial skills for children commencing at primary school, specifically targeted for those having disadvantaged social backgrounds.
The authors of the study point put that moving ahead the government and financial providers may, possibly, play a more significant role.
Results of the study indicated that financial knowledge is much greater for children who come from wealthier backgrounds, where those young people of the affluent background obtaining increased exposure to financial education prior to the secondary school. A component of the problem, the experts noted, was a result of the engagements that children made with their parents. Those coming from underprivileged backgrounds have less regular money discussions with their parents and have a lower chance of being shown the way money ‘works” by their caregivers.
This further verifies what financial advisors have been emphasizing for years which is the need for better financial knowledge on how to handle money and how to invest it. The management of taxes and incomes and how to seek out good investment opportunities are key components financial advisors point out.
