Thursday 13 August 2015
Pilot is the latest project to take forward financial education recommendations following the Independent Review
The Money Advice Service and Big Lottery Fund in Wales have announced a collaboration on a new pilot project which aims to better equip parents to teach their children money management skills.
£400,000 has been awarded to the three year joint funded project – Talk, Learn, Do: Parents, Kids and Money – which will start at the beginning of September. The pilot scheme aims to motivate parents and equip them with the confidence and ability to develop the next generation of money savvy adults. Parents will be encouraged to help their children develop skills such as self-control, perseverance, sensible attitudes to money and setting financial goals. The pilot will be implemented via nearly half of all local authorities in Wales and will reach as many as 1,000 parents and 1,600 children aged 3 to 11.
Money management is less visible to children than ever before, yet the opportunities to spend have increased exponentially. This lack of visibility is a problem and our research shows that parents teach financial capability as and when the opportunity presents itself in a reactive rather than planned way.
The shift away from cash to card and online spending has meant the events which trigger money conversation have rapidly reduced. Money Advice Service research also highlighted that 91% of 15-17 year olds say that their parents give the best money advice* suggesting that teaching parents the skills they need is the best route to educating their children about the benefits of budgeting, saving and the dangers of debt.
Today’s announcement is the latest project by the Money Advice Service aiming to improve the financial capability of the UK. The organisation is now focusing on increasing co-ordination with organisations across the UK to help deliver these improvements whilst evaluating interventions to identify what really works to improve financial behaviours.
Commenting on the news, Caroline Rookes, Money Advice Service Chief Executive said:
“This project is a collaborative effort and together with the Big Lottery Fund, Welsh Government and our partners, we want to empower children across Wales to make the most of their money both now and in later life.
“Our recent research has highlighted that parents have the biggest impact on their children’s financial behaviours and with this in mind, there is no one better placed to arm children with the skills and knowledge they need to make good financial decisions and reach their financial aspirations.
“This project is the next step in a new way of doing things for the Money Advice Service, collaborating with organisations to deliver projects which can really make a difference to people’s lives. We look forward to working closely with our partners and initiatives across Wales to make this project a success.”
Big Lottery Fund Wales Director John Rose said:
“The Money Advice Service has created a great pilot scheme and I look forward to seeing it in action. Partnering with local initiatives will mean they can offer a meaningful project that will make a difference to people’s lives. Instilling a sense of financial responsibility from a young age can really help children achieve their goals in later life.”
Minister for Communities and Tackling Poverty, Lesley Griffiths, said:
“It is important for children to develop sound money management skills, which will stand them in good stead for the rest of their lives. This is why I am pleased the Money Advice Service will be working in partnership with Welsh Government initiatives, such as Families First, Flying Start and Communities First, on this pilot programme.
“The project is set to help parents support their children to develop self-control, perseverance, sensible attitudes to money and the ability to set financial goals – all of which are vital life skills.”
Notes to editors:
*Unpublished MAS parents quantitative research project to support the pilot, 2015
**Money Advice Service survey of 15-17 year olds, 2014
About the parenting pilot:
The one year pilot (and accompanying two year longitudinal evaluation) will test the effectiveness of weaving financial capability content into existing parenting programmes in Wales. The resources used will raise awareness to parents of the important role they play and equip them with the desire, confidence and ability to develop the next generation of financially capable adults. The aim is to produce rigorous evidence and a programme of work that could be nationally scaled up if proven to be effective and value for money.
The pilot will take place across a number of local authority areas including; Wrexham, Flintshire, Cardiff, Rhondda Cynon Taff, Newport, Denbighshire, Monmouthshire, Conwy, Swansea and Caerphilly.
Organisations taking part in the pilot include:
- Families First
- Flying Start
- Barnardo’s Cymru
- Action for Children
About the Money Advice Service
The Money Advice Service is an independent organisation. Set up by government to help people make the most of their money, it gives free, unbiased money advice across the UK – online, over the phone and face to face. Paid for by a statutory levy on the financial services industry, raised through the Financial Conduct Authority, its statutory objectives are to enhance the understanding & knowledge of members of the public about financial matters (including the UK financial system), and to enhance the ability of the public to manage their own financial affairs.
About the Big Lottery Fund
The Big Lottery Fund supports the aspirations of people who want to make life better for their communities across the UK. We are responsible for giving out 40% of the money raised by the National Lottery and invest over £650 million a year in projects big and small in health, education, environment and charitable purposes.
- Since June 2004 we have awarded over £6.5billion to projects that make a difference to people and communities in need, from early years intervention to commemorative travel for World War Two veterans.
- Since the National Lottery began in 1994, £33 billion has been raised and more than 450,000 grants awarded.
For more information please contact the Money Advice Service Press Office on 020 7943 0593 or email firstname.lastname@example.org.