In the UK, Secretary of State for Children, Schools and Families, Ed Balls, is targeting to reduce the number of children who leave school financially illiterate. Children will be taught how to manage money, calculate rates of interest and plan a pension. The younger the children being taught, the better.

66% of adults in the UK are struggling to understand basic financial language and most of them are completely ignorant about investment opportunities. While personal debt has risen to a whooping 1.324 trillion pounds, there are still those who lose 10 billion pounds every year due to bad investment decisions.

Secondary schools has been directed to teach their students personal finance, enterprise and career progression in order to prepare them better for adult life. Ed Balls believes that youngsters should be better informed so they may manage their money and finances effectively in their adult life. He thinks that getting young people to better think about their careers and equip UK children with financial skills is essential to a better future.

In most schools around the world the lesson about money management, finances and monetary theories is nowhere to be found. As we teach our children to understand everyday money issues as opening a bank account, buying a house and saving, we are developing a sense of responsibility in them as citizens of the world.

The UK Government Ministers are hoping to use Child Trust Funds as the starting point for financial education. They will be providing every 5 year old who are entering school with their very first fund. Children born on and after 1 September 2002 have a voucher for 250 pounds to get their Trust Fund started. Those who come from poorer families receive vouchers for 500 pounds.

The UK government is now planning to teach their children about the role of personal budgeting, personal savings, money management and a range of financial products including pensions, trade, investments, interest rates and taxation. Moreover, children in the UK soon will also understand about business enterprise and how to manage risk!

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