Financial literacy is a vital life skill, according to research

Research from investment managers M&G Investments found that financial literacy is a vital life skill, with more than 50 per cent of parents believing that schools have an important part to play in financial education.

The research surveyed over 500 parents and 360 grandparents, exploring their views on financial education. It found that 28 per cent of parents believe that children should take responsibility when it comes to understanding money, whilst over 25 per cent think that grandparents should have a role to play in their grandchildren’s financial education.

Skills

The top financial skills for children to learn before they become an adult were identified in the survey.

The importance of saving was found to be the most important skill that parents and grandparents believe children should learn, followed by understanding the value of money and learning to budget.

M&G Investments suggested that parents and grandparents help children to develop financial skills by encouraging them to save money, contributing to a Junior Isa, and taking the time to teach them about the benefits of saving and investing money at an early stage.

Vital

M&G Investments Investments Director Ritu Vohora commented: “Financial literacy is an absolutely vital life skill.

“Whether that's how to put together a daily budget or to save, borrow or invest sensibly to achieve longer term goals, it's critical to prepare young people for adult life by making sure they're financially savvy.”