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Young people are hungry to learn more about money, but financial education is still largely neglected in schools around the world — harming the potential of individuals and economies. 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 founded by the FT in 2021, and literally through our engaging partner Magic Breakfast, which provides 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 high schools. The charity campaign reached thousands of young people in formal education and more than 2 million others through educational videos on social media. The initial international push ranges from a collaboration with an Italian TV cartoon to a planned mass launch of a financial education program in India, with local charity Pratham.
This was only possible with the generous support of FT readers. The exciting partnership between FLIC and Magic Breakfast means that readers and any corporate supporters who may choose to make or pay reader donations will be supporting the charities’ vital next steps. As an indication, £1 million raised would mean a year’s worth 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. Studies have shown that hunger inhibits educational achievement. Last week, the British Institute for Education Policy, a think-tank, reported that Children under five who experience food insecurity are more likely to have poor math skills and cognitive development. The UK Labor government has pledged to provide free breakfast to all primary school pupils, but there is a huge need to extend provision to secondary level.
The nature of school learning also leaves large gaps in vital areas. In theory, financial literacy is part of the curriculum in England. 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 to deal with financial topics, busy schedules and a lack of quality control by regulators mean that financial literacy is often neglected.
One of FLIC’s first priorities was to develop a comprehensive high school curriculum that maps directly to every element of the curriculum, but in a way that supports teachers and engages students.
Feed the future
Support the financial literacy and inclusion campaign shared seasonal appeal with the Magic Breakfast
FLICand the FT, also argued that policymakers need to ensure that basic financial knowledge is treated as a key life skill, reinforced through a maths curriculum that places more weight on “maths for life”. Without such skills, consumers risk making poor borrowing or saving decisions, which could cost them dearly. In contrast, financially literate young people are far more likely to invest productively or succeed as entrepreneurs, to the benefit of 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 literacy more seriously — the Nordic countries excel in both feeding students and teaching about finance — but everywhere could do more.
Global data is scarce. But a World Bank study ten years ago found that barely a third of adults had even a basic understanding of interest rates and investment risk. Another priority of FLIC is to improve data monitoring.
An increasingly complicated market for retail financial products, which can be mis-sold, combined with far easier access to these products via smartphones, makes all these tasks even more urgent. Supporting FT Seasonal appeal will ensure that they are dealt with.
