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Young people are hungry to learn more about money, but financial education remains grossly underserved in schools around the world, harming the potential of people and economies alike. Today we launch the Financial Times Seasonal appeal in support of two charities with complementary ambitions to “feed the future” – metaphorically through FLIC, the financial education charity the Financial Times established in 2021, and literally through our appeal partner Magic Breakfast, which offers free meals in UK schools.
Magic Breakfast already feeds more than 200,000 young people in England and Scotland every morning. Meanwhile, FLIC’s financial curriculum is taught in nearly 500 secondary schools. The charity has reached thousands of young people in formal education and over 2 million others through educational videos on social media. A nascent international push ranges from a collaboration with an Italian television cartoon to the planned mass launch of a financial education program in India, with local charity Pratham.
This has only been possible with the generous support of FT readers. FLIC’s exciting partnership with Magic Breakfast means that readers, and any corporate sponsors who choose to donate or match readers’ donations, will support the charities’ vital next steps. As an indication, a million pounds raised would mean a year of healthy breakfasts, and financial skills Training for 10,000 students.
The potential power of two simple school interventions—a decent breakfast and a lesson about money—is enormous. Research has shown that hunger hinders educational achievement. Last week, the UK Education Policy Institute, a think tank, reported that Children under five who experience food poverty are more likely to have weak math skills and cognitive development. The UK Labor government has promised to offer free breakfast to all primary school pupils, but there is a huge need to extend the provision to secondary level.
The nature of school learning also leaves huge gaps in vital areas. In theory, financial education is on the English curriculum. But most of the material is within the so-called PSHE area, which covers a wide range of topics such as health, sex and relationships. The nervousness of some non-specialist teachers when approaching financial topics, a tight schedule and the absence of quality control by regulators mean that financial education is often neglected.
One of FLIC’s first priorities has been to develop a comprehensive secondary school learning program that relates directly to each element of the curriculum, but in a way that supports teachers and engages students.
Feed the future
Support the Financial Education and Inclusion Campaign joint seasonal appeal with Magic Breakfast
FLICand the Financial Times, have also argued that policymakers should ensure that fundamental financial knowledge is treated as a key life skill, reinforced through a mathematics curriculum that gives greater weight to “mathematics for life.” life”. Without those skills, consumers risk making poor decisions about borrowing or saving, which could cost them dearly. In contrast, financially literate young people are much more likely to invest productively or succeed as entrepreneurs, benefiting society.
It is commendable that the UK government has launched a curriculum review to modernize the approach to learning. Other countries are also taking financial education more seriously (the Nordic countries excel at both feeding students and teaching them finances), but they could all do more.
Global data is scarce. But a World Bank study from a decade ago suggested that barely a third of adults had even a basic understanding of interest rates and investment risk. Another FLIC priority is to improve data tracking.
An increasingly complicated market for retail financial products, which can be mis-sold, combined with much easier access to those products via smartphones, makes all of these tasks even more urgent. Supporting the Financial Times Seasonal appeal will ensure that they are faced head-on.