More than one in three (36%) secondary school children have accidentally spent real money online, in an app or computer game, new Nationwide research reveals.
Yet despite almost three quarters (73%) feeling confident managing their money, just a third (33%) understand budgeting and only 11 per cent understand interest.
The findings highlight a gap between young people’s financial confidence and their real-world money skills as Nationwide, in partnership with Visa, builds on financial education support by expanding its teacher training programme into secondary schools for Key Stages 3 and 4.
According to the poll of over 2,000 11 to 16-year-olds and more than 2,000 parents, only a third (33%) know what creating and sticking to a budget means, fewer than one in four (23%) know what tax means and just 11 per cent understand what monetary interest is.
Children themselves recognise the need for greater financial education at school. Two thirds (66%) don’t believe they’re being taught enough financial education school to prepare for adult life, while 63 per cent of parents would welcome greater support to build children’s money skills.
More than half (55%) of children rank money lessons among the most important things to learn at school, behind maths (69%) and English (60%), but ahead of computing (37%) and science (26%).
Despite children growing up in an increasingly digital world, cash remains an important way of learning about money. More than half (52%) say handling cash helps them learn because they can see what they have, compared with 46 per cent who say using an online banking app helps.
Nationwide expands financial education support:
Nationwide is now expanding its teacher training programme into secondary schools for Key Stages 3 and 4, following its launch for primary and Key Stage 2 teachers earlier this year.
Developed with Visa and linked to Nationwide's Money Lessons resources, the free, CPD-certified programme combines teacher training with ready-to-use lessons, slides and classroom activities, helping teachers build confidence in teaching money skills without having to create materials from scratch. It consists of four modules:
- Financial foundation
- Saving, borrowing and interest
- Risk, protection and financial security
- Big life decisions and long-term thinking
The expansion will help teachers bring practical money skills into the classroom at an age when young people are beginning to make more independent financial decisions, including spending their own money online.
It comes a year after the Government's Financial Inclusion Strategy set out plans to strengthen financial education, including making it compulsory in primary schools. The Money and Pensions Service has previously found that fewer than half of children aged seven to 17 receive a meaningful financial education at home or school and that only around one per cent of UK teachers have received financial-education training.
Amanda Beech, Director of Group Retail Services at Nationwide, said: “Young people are growing up in a world where spending money can take just a tap or click, so understanding how to manage it has never been more important. Our research shows a clear gap between confidence and knowledge. Most children feel comfortable managing money, but far fewer understand basics like budgeting, tax and interest. Teachers can play a vital role in closing that gap, but they need the right support. By expanding our Teacher Accreditation Programme into secondary schools, we can help more teachers bring practical, real-world money skills into the classroom as young people become more financially independent.”
Lee Parkinson, aka ‘Mr P’, is a teacher and education influencer. He said: “Money is one of the most important life skills we can give young people. Teachers want to prepare children for the real world and Nationwide's teacher training and ready-to-use money lessons make it easier for them to bring those essential skills to life in the classroom.”
