Let’s face it – most of us leave school knowing how to solve complex equations, but struggle with balancing a chequebook. Here are six crucial money skills that should be on every school curriculum in the UK.

1. Budgeting Basics

Remember that pocket money you’d spend in a flash? Imagine if you’d learned to stretch it across a month! Budgeting is the foundation of financial health. It’s about understanding your income, tracking expenses, and planning for the future. According to the Money and Pensions Service, only 65% of UK adults are confident in managing their money, highlighting the need for better budgeting skills^[1].

2. Understanding Credit Scores

Your credit score can impact everything from renting a flat to getting a job. Yet, many of us only learn about it when applying for our first loan. Knowing how credit scores work and how to maintain a good one is crucial. Experian reports that the average credit score in the UK is 797, but many people don’t understand how their actions affect this number^[2].

3. Responsible Borrowing

With UK credit card spending up by 8% year-on-year, understanding how to borrow responsibly is more important than ever^[3]. This includes knowing the difference between good and bad debt, understanding interest rates, and learning how to manage credit cards effectively.

4. Tax Literacy

Benjamin Franklin said, “In this world, nothing is certain except death and taxes.” So why aren’t we better prepared for the latter? Understanding how taxes work, how to file self-assessment returns, and what deductions you’re eligible for can save you money and stress. HMRC collected £788.8 billion in tax revenues in 2022-23, yet many people struggle to understand their tax obligations^[4].

5. Savings and Investing 101

Saving isn’t just about stashing cash under your mattress. The Financial Conduct Authority found that 27% of UK adults have low financial resilience^[5]. Learning to save effectively and understanding basic investment principles can help build financial security. Did you know the average savings account balance in the UK is £17,365?^[6]

6. Understanding Insurance

Insurance can be complex, but it’s a vital part of financial planning. From health to home, car to life insurance, understanding what coverage you need can protect you from financial disaster. The Association of British Insurers reports that the UK insurance industry manages investments of £1.8 trillion, yet many people are underinsured or don’t understand their policies^[7].

By mastering these skills, you’ll be better equipped to navigate the financial challenges of adulthood. Remember, it’s never too late to learn!