Financial education in schools needs to be practical, say experts

A “purely theoretical financial education” in schools is not enough to assist students as they need practical experience of making decisions about their money, one financial expert has claimed.

Educational charity pfeg said that students at university need to be trained in balancing a budget in class so they can work out how to balance their finances.

Alastair Mathews, director of policy for pfeg, said: “Some students have already learned something about personal finance in their business and economics work – and yet they still don’t have a clue how to manage their credit card.”

The firm added that a theoretical financial education on its own “is not a lot of help” but any subject in the curriculum could be adapted and used to teach children how to use their money.

In the Future Leaders Survey 07-08, conducted by environmental charity Forum for the Future, universities association Ucas and insurers Friends Provident, 81 per cent of respondents (taken this year’s prospective university students) claimed to be ‘very’ or ‘quite’ good an managing money.

Tags: Alastair Mathews, balancing, Knowledge, Provident, something, credit, prospective university students

One in 20 do not tell the truth in insurance applications

One in 20 consumers admit to having lied when filling out a life insurance application, according to new research.

Findings from a survey by Friends Provident showed that 95 per cent of people said they always tell the truth when completing forms for insurance.

Mark Jones, protection products and actuarial manager at Friends Provident, said: “It’s good to see many people recognise the importance of advice when buying insurance, and they take the time to answer all questions truthfully when applying for insurance.”

Over half of the respondents said that those who did not tell the truth deliberately on the forms should be punished by not being allowed any benefits

Under half said they would do research online before taking out insurance while 20 per cent would take advice from a financial expert and a further 15 per cent would rely on information from family and friends.

A further one in five admit to not reading the terms and conditions in a policy before signing up.

Meanwhile, research from Nationwide has revealed that a fifth of homeowners do not have buildings insurance.

Tags: Types of insurance, policy, Financial services, actuarial manager, benefitsUnder half