'What about the money?'

Writing in the Guardian's' Money Section, Saturday 10th October 2009, Huma Qureshi in his article An Education in Financial Planning outlines how a generation of young people saddled with loans and debt need help to untangle the many money challenges facing them after leaving full time schooling.  Learning money management skills is very important work and for me would be an integral module in my sixth form CEIAG programme of work.


The National Skills Academy for Finanacial Services - a financial education charity - is visiting colleges and universities to talk about money habits and money management, and encouraging students to make a pledge to improve their finances. Their money for life project aims to provide young adults with impartial advice via a website for 16 to 24 year olds. Click here for further details

With students reportedly leaving university with an average debt of more than £15,000, it's a much needed initiative. At the recent Conservative party conference plans were unveiled that would see graduates offered discounts for repaying student loans early. This would raise an emergency fund to expand universities and prevent a repeat of this year's admission crisis.

Young people are receptive to learning about money management.  Knowledge is power, so if young people can be given the knowledge to make better financial decisions, then it will help them set up for the future.  This is a crucial learning stage for them.  Money becomes an active part of their life when they start figuring out how much courses at college or university will cost, and whether or not a part-time job is needed.  That's why it is important to share ideas on how to save .  Simple lessons on learning how to budget could save students endless hours of worry on how to cope when faced with independent living.

Some practical lessons for you to develop with your students might include:

(a) A Money Pledge Stand where students are encouraged to scribble down ideas on how they intend to improve their finances. each student's pledge can be taped to the wall forming a money tree of sorts. The pledges could vary from responses to saving accounts, stopping spending on unwanted goods to setting a weekly target save from a part-time job.

(b) Encourage the year group to come up with reasons for budgeting - a list of top tips to be posted in a prominent position in the careers room for younger students, as well as sixth formers to see and think about.

(c) Get the group to work out what type of student loan is suitable for their needs, whether they are eligible for other financial aid and, of course, to keep their eyes open for student discounts wherever they go.

Student life doesn't only offer higher education.  It's also an opportunity to learn first class financial management skills.With your money management module behind them they should be in a much healthier and confident position to meet the financial challenges ahead in adult life!