I have been speaking with my clients a lot over the past few months about ‘the next generation’ in anticipation of our first ever next gen workshop later this year.
The conversations have been fascinating and have highlighted a huge knowledge gap when it comes to personal finance.
The financial world is more complex and faster paced than ever before and yet we seem to be giving young people less and less education to help them prepare for their financial journey through life.
The majority of young people now are entering the ‘real world’ without any knowledge of pensions, mortgages, credit card or interest rates. Knowledge that many of our clients will take for granted.
Although personal finance is supposedly on the national curriculum to be taught at schools, it is thought that only 40% or so of schools are actually delivering these lessons. I might also be to forward as to suggest that teachers might not be the best placed people to be delivering personal finance lessons (an assertion that teachers themselves agree with).
Although sometimes the media can create a self fulfilling prophesy, it has been well reported how a lack of financial education in schools is creating a real challenge for young people as they emerge into a somewhat harsher financial environment than previous generations.
It is well known that the young of today will face higher property prices, a lack of ‘gold plated’ final salary pensions and perhaps lower investment market growth to boot.
Although these issues present challenges, they are here to stay. Moaning about them will do nothing to prevent them and so we must take action to try and overcome these hurdles.
In my view, the first step is education. That is why we will be doing more over the coming years to educate the next generation. Our mission starts in earnest later this year when we host our very first ‘next generation’ workshop.
Our aim is to instil some of the basic financial knowledge that has helped our clients be so successful financially.
Although it is just a scratch on the surface, we have to start somewhere. Watch this space for more news later this year.