Financial Planners have welcomed plans announced by the Labour Party at its conference this week to introduce better financial education for primary school children.

In a speech conference, Shadow Education Secretary Bridget Phillipson pledged that Labour would strengthen financial education in schools to tackle the, "chronic cultural problem with maths."

Under Labour plans, should they be elected at the next General Election, the party would introduce mandatory "real world maths" lessons for primary school children, including lessons on financial education.

Several Financial Planners have expressed support for the strategy.

Ian Else, founder of 4 Financial Planning, said if Labour's plans were properly implemented they could significantly close the advice gap.

He said: “The advice gap has been a buzz phrase for several years now. Whilst I agree there is a gap, it can be closed significantly with financial education and literacy. Anything which educates young people in the basics has to be welcomed. But the proof is in the pudding, let’s see whether it is implemented."

Steven Levin, CEO of Financial Planner and wealth manager Quilter, said: “Teaching primary school children about financial education might seem too young but many perceptions of the world and foundational skills are learnt at a young age and money is such a big part of our lives it seems natural that it would form a part of their learning.

“Budgeting and other financial skills can help to set children on a path to financial independence and resilience and help to address a serious lack of financial education in the UK. According to the FCA, in May 2022, 12.9 million UK adults had low financial resilience, which equates to one in four (24%) of all UK adults.

“Labour should look to the great work being done by many financial education charities, such as MyBnk, to ensure that current maths teachers can learn to teach best practice when it comes to financial education. The curriculum's pivot towards real-world applications, like household budgeting and understanding sports league tables, is sensible but it needs to be taught in an engaging way. It's not just about the numbers; it's about the behavioural aspects of making informed decisions that benefit your financial health in the long run.

"Embedding these lessons early on, gradually evolving the complexity as children grow, ensures that future generations are not just numerate but also financially savvy. Equip children with the right skills, and they become adults capable of navigating challenges adeptly.”

Keith Churchouse, Chartered Financial Planner and founder of Chapters Financial in Surrey, said that personal financial education has been missing from the UK curriculum and any plans to introduce it should be welcomed by Financial Planners.

He said: "The real delivery of financial education at basic levels has been sorely missed in the UK education system for decades. Considering that organisations, such as the CISI among others, have been alive to this ongoing historic issue, it is disappointing that no political party so far has really grasped the nettle in bringing this void to an end.

"Therefore, any plans or process change to help our younger generations have a greater understanding of finances and financials is very welcome."

According to insurance company Allianz, low financial literacy could be costing the average household in the UK around £2,850 a year.