16 year olds 'should get mandatory bank accounts'
Published 31 January 2012
The CEO of CISI, a global securities and investment company, says the Government should go further in educating teenagers about personal finances, with budgeting lessons in school and a mandatory bank account when they turn 16.
The CEO of a global securities and investment company believes the Government should go further to educate teenagers about money. He proposes budgeting lessons in schools and a mandatory bank account for every child when they turn 16.
Simon Culhane, the Chief Executive of the Chartered Institute for Securities & Investment (CISI) says: "We should help our children understand personal finance at a much earlier age, especially as electronic money transmission, whether through debit or proximity cards or by text is, or will be, the norm."
He highlights that every child receives their National Insurance number when they turn 16. The personal vetting carried out by the Government when they give someone an NI number could ensure that every child receiving a bank account at the same time is genuine.
The benefits of having a bank account at an early age include learning how to manage your money as an adult, as well as learning about bank transfers, debits and budgeting.
The House of Commons debated mandatory bank accounts for 16 year olds just before Christmas, with cross-party support. There was also a great deal of support for money management lessons in schools.
Mr Culhane says why he hopes the Government will follow through on its plans: "Within families, about 19% of parents have never discussed with their teenagers how to spend money and 32% have yet to talk about how to budget, or even describe what one is, while only 36% of people understand that the term APR relates to interest payments."