Teaching Young People Money Management

The question

How to approach this problem and solution question

A problem and solution essay needs specific causes or problems first, then realistic solutions that match them.

1. Introduce the issue and why it matters.
2. Body 1: the main problems or causes, with examples.
3. Body 2: solutions that clearly link to each problem, saying who should act.
4. Conclude by summarising the best solution.

How to plan this answer

Structure

1. Introduction: paraphrase the lack of financial skills among school leavers and state the two main reasons you will explore: the curriculum and the way families talk about money.
2. Body 1: the reasons young people lack financial skills, covering a crowded school timetable, parents who feel unsure themselves and aggressive marketing of credit.
3. Body 2: what schools could do, such as a compulsory personal finance module with practical tasks like budgeting and reading payslips.
4. Body 3: what families could do, such as giving pocket money with a budget, sharing household bills and opening a savings account together.
5. Conclusion: summarise the causes and suggest that schools and families work together, since each reinforces the other.

Idea bank

• A school budgeting exercise in which pupils plan a month of spending on a limited income and must balance their accounts.
• Buy-now-pay-later schemes advertised online, which make borrowing look painless to teenagers and young adults.
• A family discussing the weekly food shop and utility bills openly, so the child sees money being planned.
• Pocket money tied to a savings goal, such as a phone or a trip, which teaches delayed gratification.
• Counter-argument: schools already have heavy curriculum demands, so financial education must be integrated rather than added on.

Useful vocabulary

• to be ill-equipped to: Many school leavers are ill-equipped to manage a monthly budget.
• to get into debt: Easy access to credit can lead young adults to get into debt quickly.
• a personal finance module: A personal finance module can cover savings, borrowing and tax.
• to live beyond one's means: Some young people start to live beyond their means once they receive their first salary.
• to build good habits: Regular saving at a young age helps to build good habits.
• to set aside: Setting aside a small sum each month is a sensible first step.
• to take out a loan: Students sometimes take out a loan without understanding the interest charged.
• to be lured by: Young people are often lured by offers of instant credit.
• to demystify: Practical lessons can demystify banking and credit cards.
• to model good habits: Parents who model good habits show children how to plan spending.

Common mistakes

• Writing only about schools or only about families when the question asks what both could do.
• Assuming that all young people are in debt, which is a generalisation the question does not support.
• Listing solutions without explaining how they would work in a school or home.
• Confusing debit cards with credit cards, which weakens the discussion of borrowing.

Examiner tip: Keep the two parts of the question visibly separate in your paragraphs, and give at least one practical activity for schools and one for families.