British teens worth record £2bn but lack basic finance skills

Britain’s 16-year-olds are now worth a record £2.1 billion but have poor knowledge of personal finance, according to a study by the Royal Bank of Scotland.

The study found that, four years after the government introduced financial capability onto the National Curriculum, 76% of parents and 90% of teachers were concerned about the state of teenagers’ money management skills.

More than half of GCSE students questioned admit that they lack a basic knowledge of finance: almost half cannot fill out a cheque or confidently explain the difference between a credit and debit card.

Benny Higgins, Retail Chief Executive, The Royal Bank of Scotland Group, said: "Our research reveals a worrying knowledge gap among teenagers, and a critical need to teach them basic facts about finance. We must give the teenagers of today the skills they require to deal with the world of tomorrow."

It was found that 60% of teachers believed that timetable pressures meant that financial skills training rarely gets the attention its needs.

Christine Dobson, a teacher at Bentley Wood School for Girls in London, said: "Teachers recognise the importance of these skills, but they often find it difficult to give finance lessons. Not only is their own personal finance knowledge sometimes not up to scratch, but they are also hampered by timetable pressures and a shortage of relevant materials."

(gmcg)