Duffel, Ian

English

Loughborough University Library: Open Journals

DIRECTIONS - THE TECHNOLOGY CURRICULUMCitizenshipand MoneyManagementBarclaycard Visiting FellowThe Centre for CitizenshipStudies in EducationCitizenship obviously means different things todifferent people and I for one am content tosuggest that they may all be right because tome, Citizenship is a melange of all those thingsoutside the core curriculum which betterprepare pupils for adult life. Different teacherswill give different emphases, and the balancewill vary accordingly. In any case, the rightbalance will differ from child to child.Suffice it to say that the Citizenship theme isan important ingredient in education andBarclaycard were happy to sponsor the Centreat Leicester University as an act of socialresponsibility which some teachers have foundsurprising. In fact the Barclays Group has goodQuaker roots going back 300 years, but thedoubters are right at least in part, for there isanother motive.It is evident that very few people manage theirmoney affairs to anything like maximumefficiency, not because they do not have thedesire or even in many cases the money, butrather because they have never learned therelevant concepts. Therefore, with theSpeaker's Commission on Citizenshipspecifically mentioning money management(p.14) and Curriculum Guidance 3 listing'finance, including personal finance' as acomponent of citizenship (p.S), Barclaycardsaw an opportunity to help the next generationbecome financially literate.In the long run (and this is where the doubtersof our pure altruism may be right) if morepeople understood more about money, weshould have fewer bad debts and troublesomeaccounts in the future.• To budget or not to budgetI have been a bank manager for many years inboth large branches and small and, in myexperience, most people do not understandmoney at all. In common with people whohave difficulty reading or writing, those whodo not understand money also become adept athiding the fact. Many people take the firstmortgage or life policy offered them withoutfinding out whether it really suits their ownsituation and then retreat from the 'frightening'area of finance back into the 'safe' territory ofreal life.Only a small proportion of families have anysort of written budget, whether month bymonth or week by week. This must mean thatholidays and other large commitments arebooked and entered into with no more than avague feeling that 'it will sort itself out'. Nowonder over two million families in the UKcurrently face serious debt problems accordingto the Rowntree Trust. Relate, the marriageguidance organisation, confirms that debtproblems are a major factor in maritalbreakdown, domestic violence and cruelty tochildren.• ResponsibilityBefore anyone stereotypes me as an uncaringbanker, let me say that many people findthemselves in financial difficulties through nofault of their own. At one end of the scale, in1992 the Maxwell pensioners had no chance ofprotecting themselves against fraud, as didmany of the investors banking with BCCr. Onestep up the scale of personal responsibility arethose other investors who lost money throughfraud but where they chose to invest in ahigh-risk/return organisation (Barlow Clowes,for example). Unemployment too (especially ina recession) is a commOIJ source of moneyproblems. Many people in the UK did notexpect mortgage rates to rise so far, nor theprices of houses to fall so much - yet thepossibility was always there.Some people, however, are authors of theirOwn misfortune, recklessly taking out loansand applying for several dozen credit cardswithout ensuring that they can meetrepayments. Recent articles in the press havecomplained that credit is too easily available,yet in the past, many used to complain againstmortgages queues. In a free society, wiseindividuals exercise self-restraint and are notgreedy with credit facilities just as they wouldnot leave a sweet shop with dozens of Marsbars. Credit should be seen as a privilege and aprecious resource to be husbanded, notsquandered ('They've increased my limit!') ona binge of impulse purchases.Who is to teach this self-restraint, this simpleskill of comparing APRs - or the moredifficult skill of choosing the best mortgage?Previous generations were not perhaps sotempted with credit and were more used toworking with cash alqne. Their choice wasmore limited but if wealthier parents had abank account they tended to introduce theirchildren to the same branch, and there was anelement of parental guidance.With the explosion of financial services in the1970s, many young people without parentalDIRECTIONS - THE TECHNOLOGY CURRICULUMWhat would young people be wise toinsure?6. What wages/salary do you hope tostart on?7. How much does it cost to feed you fora year?8. How many Deutschmarks are there to£1710. What is the difference between grossand net interest on your savings?11. Where will you find yesterday's FTSEIndex? How high was it?12. Roughly how much income tax doessomeone earning £10,000 p.a. pay?13. Are young people allowed by law totake part-time jobs?14. i5 e:ectl icity. gas. oil or coal cheapestfor home heating?18. Why and how would you set up astanding order at your bank?Helping pupils to managetheri moneyguidance acquired cheque books and creditcards and learnt by trial and error. This waspossibly much the same as when motor carsfirst became popular - initially no driving testwas required. No one would now argue for thefreedom to drive without first passing a testand (although I do not suggest that it should be'compulsory), learning personal moneymanagement is just as important.One in five adults cannot work outchangeI know of no other mechanism for teaching allyoung people than via schools, especially if itis accepted that many parents do not feelcompetent in this area. One in five adultscannot work out the change from £20 whenthey've spent £17.89, according to the TES(2/10/92). Many schools do accept that part ofa 'broad and balanced education' (EducationReform Act 1988) must include some lessonson budgeting and financial planning. However,some teachers fight shy of this topic, eitherbecause they cannot find time in the timetable,or because they do not feel qualified to teachthe subject in depth. Others feel it is up tobanks to teach this topic, which is just notpracticable - and might incur the charge ofmarketing to minors if they did.The concept of citizenship involves therelationship between the individual and thecommunity and I believe that citizenship isunderpinned by various fundamentals withoutwhich it could be argued that the individualcannot exercise the basic rights of citizenship- the rights of enjoying reasonable health, astable democracy and a basic education, forexample. No one can function fully as a citizenif financial worries keep them awake at nightand their daylight hours are spent dodgingcreditors or worrying about bailiffs.• School involvementSchools could do much to enhance the futurequality of life of their pupils in this area.Whatever the income of the individual,budgeting is advantageous. Many pupils willhave over £1 million pass through their handsby the time they retire - they need to knowhow to use their resources wisely rather thanfrittering them away. Useful topics couldinclude:budgetingsensible use of creditinterest on loans and savings, andAPRsleaving homeworking and paying taxcollege and grantsmortgagesinvestmenthandling debts.I would like to encourage discussion in staffrooms and at meetings of governors and PTAs,to see if a whole-school policy on teachingabout money can be developed. Numerousstyles can be considered (see CSCS BroadsheetNo. 35, Citizenship and the Art of Handling

Citizenship and Money Management

https://ojs.lboro.ac.uk/DTT/article/view/1335/1296

Citizenship and Money Management

Abstract

Similar works

Full text

Available Versions

Loughborough University Library: Open Journals