The U Ks BBC recently reported on a new government initiative to be introduced in English primary and secondary schools (ages 5 - 16): lessons in money management and how to avoid debt.



Its certainly a timely response to the current global credit crisis, where rising mortgage debt and credit card debt are combining with higher food, fuel and utility prices to make life more uncomfortable for many people. And instilling sound money management and debt avoidance principles into children from an early age has got to be a good thing.





A survey quoted in the article gave some interesting statistics:

A massive 70% of those questioned said they were discussing money more often in the home this year than they ever had before. Three out of every four parents said they didnt normally expose their children to concerns about money, and 30% usually avoided discussion of money in the home. One reason cited was that childhood should be a carefree time.



Thats a laudable aim, but if the result is that children grow up without understanding the basic concepts of sound money management and how to avoid debt then surely its also a misguided one.



Can a carefree childhood compensate for an adulthood filled with concerns and worries over money because you were sheltered from the facts? I think not.

Children are far more aware than theyre often given credit for. Maybe its not openly discussed, but if there is something seriously bothering the parents, you can bet the children know, even if they dont know just what it is.



Many parents are now having to demonstrate money management skills by default (often without the benefit of having learned these from their own parents). The survey indicated that significant numbers had reduced spending on eating out and entertainment. Around a third had chosen not to take a holiday this year, and almost half had changed to using a budget supermarket for food shopping, or were planning to do so.



Do they think these ways of avoiding debt will go unnoticed by their children?



But chances are that for some families the changes will only last until things start to ease up a little, then the spending will start again, whether or not they can really afford it.



We cant afford to let childrens only education on money management and avoiding debt come from their parents, especially if the lessons they learn are about getting out of debt once youre in deep, rather than how to avoid debt in the first place.



This must be a subject where all well thought out contributions are welcome, even the governments.