Integrating Financial Well-Being

Julia Owens

WHY?HOW?

Quick Statistics

• The average household with debts owes £16, 336 (exc. mortgage)

• 9,389 new debt problems dealt with by the CAB every day

• £178 million personal interest paid in UK daily

• Every 15 minutes a property is repossessed

• Every 3.87 minutes someone is declared insolvent or bankrupt

• 20.01 million daily write-off of loans by UK banks and building societies

• 1,732 people made redundant daily

Young People and Money More food for thought …

• Many young people today have very little understanding of the costs of living independently and/or managing their money effectively

• A recent newspaper article referred to ‘over half of the UK's teenagers falling into debt by the time they are 17’

• 68% of students surveyed couldn’t correctly identify the cheapest loan

• Recent research has shown a link between money problems and mental health issues

• Young people with money worries and/or debt issues tend to have difficulty focussing on their studies or paid employment, underperforming as a consequence and finding themselves at a disadvantage.

Why we help people to manage their money better

Psychological Wellbeing: 5.6%

Life Satisfaction : 2.4%

Anxiety/ Depression : 15%

Moving from LOW to AVERAGE levels of financial

capability

A £1000 increase in annual income leads to only a 0.2% improvement in life satisfaction

How can we do more to develop the financial

awareness and capability young people?

There’s a lot been happening in Wales this year …..

Barclays Money Skills

Under the branding of Barclays Money Skills, Barclays Bank have funded money weeks in 150 colleges across the UK in early March 2011 to help learners aged 16-24

Activities and Tutorials

Colleges must complete the two compulsory activities and at least two of the optional activities

Activities Tutorials

Money Skills Tips Leah’s Story

On-line quiz Scamming and Fraud

Style on a budget

The taste of money

Family Money Tips

Lloyds Banking Group (Money for Life)£4m in a 2-yr UK wide programme to develop approaches/resources that FE practitioners can embed in their day to day provision to help learners of all ages and abilities as they complete their studies or training (building on the original FSA project).

The Best Resources

You!

The Shopping Basket Activity

Shopping basket Activity – Competition results

Item Price of non-branded items £

Price of branded items £

Face pads 0.85 1.79

Cotton buds 0.35 1.00

Make up pads 1.50 2.29

Facial wipes 0.46 3.05

Bottled water 0.49 0.81

Nail polish remover 1.00 2.02

Plasters 1.19 3.20

Pens 1.20 3.85

Chocolate bar 1.00 1.97

A5 notebook 0.65 2.75

Cappuccino sachets 1.69 2.55

Total 10.38 25.28

14 Branded items

The same 14 items from the Basics range

Competition answer

Financial Well-Being

and PSE

Active Citizenship Understand how indibiduals and voluntary groups can bring about change locally, nationally and internationally.

Health and Emotional Well-Being Understand how to critically evaluate personal lifestyle choices in the context of physical health and emotional well being, considering the short and long term consequences of such decisions Understand the life experiences which enhance or damage self esteem

Moral and Spiritual Development Develop a consistent set of personal values and have the confidence to apply these in practice.

Preparing for Lifelong learning Develop the confidence and drive to set personal goals and put their ideas into action. Understand their increasing independence in terms of managing personal finances and accessing credit.

Sustainable Development and Global Citizenship What is sustainability? Raising awareness.Saving energy and reducing waste.Promote the use of environment-

friendly products.

Financial Well-Being and the Welsh Baccalaureat

Wales Europe and the World. Element 2: Social Challenges and responses. How social deprivation and inequality can affect people and communities.

Personal and Social Education. Element 1. Positive RelationshipsKey Issue:1. The challenges facing life in today’s society Who supports people faced with poverty and debt. The ways young people’s lifestyles are influenced by peer pressures.

Element 2. Health and Emotional Well-Being Key Issue 1. The benefits of a healthy lifestyle as a lifelong target. Physical health care, mental health care and preventative health care. Discussion about what is a stress related illness (anxieties, phobias and exam stress).

And so on …

Key Skills

What will be happening next year?

• CPD Programme

• Learner Activity

• Further development