She’s got us dancing to Jessie J “it’s not about the money money money”. Get over the post-lunch graveyard slot.
But in some cases it is. 90% of adults haven’t had any financial education. Personal debt is over £1.5 trillion, greater than national GDP. 15% of young people thought an ISA was an iPod accessory, and 50% an energy drink. On the other hand, 48% of 18-24 year olds say debt is their biggest fear. 26% of Britons have no savings at all.
Why do young people queue? Usually for food or for something that is free. Lily has videoed young people queuing to save money. The bankers she works with look very different from our stereotypical image.
It’s not just about behavioural change, but also about financial education. Instead of telling us about financial education, we’re going to do some exercises.
Who knows what APR is? Instead of annualised percentage return, remember that P stands for ‘pay’ – what you pay for borrowing. What about AER? E stands for ‘earn’ – what you want to earn from saving.
People that budget regularly make what level of savings per year? The answer is D, £1500. What is the favourite student meal? Pizza. Save money by buying from a shop rather than getting a takeaway.
One of the first major decisions children make around money is where to open a bank account. And they take it really seriously. One of the first questions they ask is “what is your ethical policy?” then, if that one confuses the cashier, “how is my money going to be invested to make the world a better place?” [questions to ask our banks, methinks]