I rarely use cash, especially since the pandemic encouraged us all to shift even small amounts of spending to contactless cards or mobile phones. In fact, most of my encounters with cash nowadays are when my kids get their weekly pocket money. I’m all for kids embracing and becoming familiar with digital technologies, and that should definitely include managing and using money. Nevertheless, I worry that an understanding of money itself, and, more importantly, the value of money, is harder to teach these days without something tangible, like cash, to tie it back to. 

In the UK, financial literacy education forms part of the National Curriculum, but is mostly only taught in secondary schools (key stages 3 and 4) and, in any case, its implementation is both patchy and does not go far enough. Recent research has found that 61% of young adults did not recall receiving any financial education at school and that around 30 hours of financial education for 11- to 18-year-olds would be the minimum amount needed to achieve financial literacy¹

I firmly believe we need to start much earlier than that. Sure, you need good numeracy skills, but those are just tools, building blocks for a good financial foundation. The earlier you start, the more concepts you can cover. By understanding financial basics early on, children are better equipped to tackle complex financial decisions later in life, from student loans to mortgages. And this all feeds into another one of my “soapbox” topics: entrepreneurship. We should be exposing kids to the concept of enterprise and business early on, and financial literacy is a key component of that. 

Taking Action: Empowering Your Kids 

The good news is, you, as a parent, can play a crucial role in building your child’s financial literacy. Here are some practical steps to get you started, turning everyday moments into money lessons. 

• Involve your child in creating shopping lists and discussing the cost of items. Let them help with budgeting by allocating amounts for different categories, like groceries or treats. 
• Provide opportunities for them to earn pocket money through chores or simple tasks. Guide them on how to divide their earnings, encouraging them to save for a dream toy while putting some aside for future purchases. 
• Board games can be powerful learning tools. Try age-appropriate games like Monopoly Junior or Pay Day that introduce basic financial concepts like buying, selling, and budgeting in a fun way. 

Use your household as an example 

Once you’ve covered the basics, you should introduce financial concepts into everyday conversation by talking about your household finances (in an age-appropriate way). You can discuss household expenses like rent, bills, and groceries to help them understand how money flows in and out of a family. And be open about the concept of work and income. Discuss how earning money allows us to afford things we want and need. This is a step up from pocket money: we want our kids to know that money is an exchange of value, not something that appears “out of nowhere”. 

More resources 

• MoneySavingExpert has a wealth of additional free resources provided by financial institutions and charities, as well as a free-to-download financial education textbook by Martin Lewis himself.  
• MoneyHelper, by the Government’s Money & Pensions Service, has a whole raft of guides for how to talk to kids about money at different ages 
• Books aimed at children, like “The Great Pet Sale” (ages 3-5), “Lift-the-flap Questions and Answers about Money” (ages 6-8) and “The Young Investor: Projects and Activities for Making Your Money Grow” (ages 9-12) cover all sort of financial topics in an age-appropriate way. 

Let us know of any resources or approaches you have found useful in the comments. 

1.  Financial education in schools | House of Lords Library, January 2024 ︎

The post Make your kids ‘Money Smart’ first appeared on Conflicted Parent.

What are 21^st Century skills?

Many organisations and thought leaders have tried to list what they think are the important skills for the 21^st century. But when you look closely, they’re all talking about the same things: thinking critically, being creative, communicating well, solving problems, working with others, and being able to use and manage information. For the purposes of this blog, the Conflicted Parent is going to use the World Economic Forum’s (WEF) list of 16 critical skills that I mentioned in this post.

The WEF splits these skills into 3 areas: foundational literacies, competencies, and character qualities. 

Foundational Literacies

The basic skills and knowledge you need to understand and engage with the world effectively, like reading and writing

• Literacy: The ability to read, write, speak, and listen in a way that allows us to communicate effectively and make sense of the world. 
• Numeracy: The ability to understand and work with numbers. 
• Scientific Literacy: The ability to understand and use scientific concepts and processes to make informed decisions about the world around us. 
• ICT literacy: The ability to use digital technology, communication tools and/or networks to define, access, manage, integrate, evaluate, create and communicate information effectively and ethically. 
• Financial literacy: The ability to understand and effectively use various financial skills including personal financial management, budgeting and investing. 
• Cultural and Civic Literacy: The ability to understand different cultures and perspective and participate effectively in civic life. 

Competencies

How you approach and handle a specific situation to achieve success 

• Critical thinking: The ability to analyse information, evaluate arguments, and make decisions based on evidence. 
• Creativity: The ability to think outside the box and come up with innovative solutions to problems. 
• Communication: The ability to express oneself clearly and effectively, both verbally and in writing. 
• Collaboration: The ability to work effectively with others, including those from diverse backgrounds and cultures. 

Character Qualities

Personal traits and behaviours that shape how you interact with others and approach situations 

• Curiosity: The desire to learn and explore new things. 
• Initiative: The ability to act and make things happen. 
• Persistence: The ability to persevere in the face of challenges and setbacks. 
• Adaptability: The ability to adjust to new situations and changing circumstances. 
• Leadership: The ability to inspire and guide others towards a common goal. 
• Social and cultural awareness: The ability to understand and appreciate different cultures and perspectives. 

To succeed, we don’t have to be experts in everything, but we do need a balance of foundational literacy, competencies, and character qualities. It’s the mix of these three that really makes the difference. 

How do these skills get applied in the real world?

Let’s illustrate this with some real-world examples: 

Sir David Attenborough has been exploring and documenting the natural world for over 60 years. Grounded in geology and zoology, which he studied at Cambridge, he has leveraged his scientific literacy to produce and present documentaries on natural history and environmental issues, where he uses his excellent communication and critical thinking competencies to explain complex scientific concepts in an engaging and accessible way. Among his character qualities is obviously curiosity: he has never ceased to be fascinated by learning new things that he can then tell us about. What may be less known are his leadership abilities. As controller of BBC2 in the channel’s infancy, he set the standard for “authored documentaries” and was responsible for commissioning programmes as varied as Match of the Day, Monty Python’s Flying Circus and The Money Programme. 

You (and your children) may know Emma Watson primarily from her work on the Harry Potter movies, but she has also exhibited her literacy and cultural and civil literacy skills as an author of books and speeches on gender equality and women’s rights. She needed her communication competency to deliver those speeches at the United Nations and in many interviews. Emma Watson’s character qualities such as initiative and leadership drove her to create the HeForShe movement to promote gender equality. 

Martin Lewis, founder of the MoneySavingExpert.com website has been promoting financial literacy and consumer rights for over 20 years, demonstrating not only his own financial literacy skills but also a healthy set of competencies and qualities including initiative, communication, collaboration and leadership. He explains complex financial concepts in an engaging and accessible way, and founded the Money and Mental Health Policy Institute, which aims to improve the lives of people with mental health problems by promoting financial education and support. 

Success, for these British luminaries, as well as our children, requires a combination of all three areas – foundational literacy, competencies, and character qualities. This is what they need to thrive in an uncertain, complex, and frankly, tough world. 

Convinced? Great, you’re in good company. Globally, there’s a consensus, from UNESCO to the WEF, EU, and the UK government, that new learning approaches are needed to address challenges. However, there’s a problem: ‘there is currently little or no substantial evidence available on the most effective tools and approaches to deliver those skills’.¹

In the meantime, our education systems maintain the status quo – focusing on foundational competencies and standardised assessments. That’s not the right answer for today’s parents who must try to supplement the gaps. 

But here’s where parents can make a difference. In the absence of a globally agreed map, many innovative educators are simply taking action, and you can too! 

Join me on my journey to enrich my children’s education through meaningful family experiences, to prepare them for a future we’re only beginning to understand.

1. 21st Century Skills | Institute of Development Studies ︎

The post A Parent’s Guide to 21st Century Skills first appeared on Conflicted Parent.