By Darren Parkin
Financial literacy in the UK is falling short of rates found elsewhere in the Organisation for Economic Co-operation and Development (OECD), ranking it 15th of 29 OECD nations with only 67% of adults being assessed as financially literate.
This is clearly an issue that needs to be addressed. Prioritising financial education could add nearly £7 billion to the UK economy each year, according to the study. But, of course, that’s the macro level.
Financial literacy is essential for individuals to navigate the complex financial landscape, make informed choices, and achieve their ultimate financial goals, such as being financially free in retirement. It helps obtain financial security, stability, and independence.
Whilst financial literacy is not a compulsory part of the national curriculum in the United Kingdom, there have been efforts to improve financial education in schools in recent years to help improve levels among young people. This typically includes budgeting, debt management and saving.
A noble advance certainly, but I do not think the current financial literacy push goes nearly far enough and that it should include lessons on cryptocurrencies.
Digital assets are an important part of the rapidly evolving economy and this is only set to pick up pace as tech continues to drive every aspect of our world.
Teaching ‘crypto-plus’ can help students understand the economic implications of decentralised currencies, digital transactions, and the potential impact on traditional financial systems.
There can be no doubt that those young people who understand digital currencies will be better placed to become successful in the 21st century. Cryptocurrencies like Bitcoin, which has the core values of being digital, global, borderless, decentralised and tamper-proof, are the future of finance, which is evidenced by the growing institutional investor exposure in the market and the international agenda to create crypto regulatory frameworks.
Besides the direct financial advantages, there are other ‘soft’ benefits too.
By learning about crypto, young people can gain exposure to emerging technologies, enhancing their technological literacy and understanding of decentralised systems.
Students would also develop an understanding of digital security, encryption, and privacy, which are becoming increasingly important in today’s tech-fuelled world.
An understanding of investment concepts, risk management, and the potential opportunities and challenges associated with investing in digital assets, would also prove to be invaluable; as would gaining insights into entrepreneurship, innovation, and the potential for disruptive technologies to shape industries and create new opportunities.
In short, I’m firmly of the belief that whilst the financial education currently being taught to our young people is a step in the right direction, it is inadequate and will remain so until it is compulsory, more in-depth, and includes cryptocurrencies.
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