“It’s never too young to start” – that’s the advice from the CEO of the Irish League of Credit Unions David Malone when it comes to learning about the value of money.
“Teaching very young children, in primary school as a start, about personal finance can really plant those early seeds for financial success,” he said.
Mr Malone believes that when young minds understand credit, and that it’s a promise to be kept, they are developing a foundation for responsible money management that serves throughout their lives and helps them become talented financial decision makers.
Children as young as four or five years of age can begin learning once it’s taught in an impactful way to them and by using interactive approaches to introduce the basics, according to Mr Malone.
Start Money Smart is a primary school resource developed by the ILCU, the ILCU Youth Committee and online educational company Twinkl Ireland.
The programme is divided by class – with tailored activities suited to each level – from Junior Infants to Sixth Class.
Topics across each level include money and maths, earning money, budgeting, spending and saving, impulse buying vs investing, financial literacy and the history of a credit union and how it works.
These are taught through interactive and engaging exercises such as planned activities, loop and prompt cards, word searches, quizzes, board games, fact files and worksheet challenges.
“It’s done in a a very exciting way and very interactive way with the students,” said Mr Malone.
“We find the interaction in the classrooms, where not only is the teacher going through this with the with the kids, but they ‘re learning from each other as well.”
Two of the Credit Union’s ten key operational principles are education and social responsibility, which include the promotion of thrift and savings.
Mr Malone advises starting a savings trend early and drawing parallels with the value of money.
This could mean helping a child save monthly for a specific purchase and making the distinction between just buying something and saving for something.
“I think the kids really get a lot of value out of the achievement of saving for something and the excitement that comes with that.
“That’s what we hear from the teachers, that children enjoy that aspect of the programme.”
Teachers or parents are also encouraged to set up a work and reward chart to organise a budget for a family or a class trip.
This helps children understand the benefit of saving and then they see the reward at the end where they have the actual family or class trip.
Other simple tasks include creating a fun activity such as a budget for a birthday party.
Mr Malone said not only does this task incorporate math’s problems, but it reinforces the concept of building a fundamental of saving and then having the reward at the end.
The Credit Union also runs ‘Clued In’ which is an educational programme for secondary schools.
It too focuses on disposable spending, budgeting, credit and dash, but it’s more sophisticated and brings learning to the next level and explains different forms of credit.
“It’s really essential to keep that learning going through a child’s life, not just in primary school but building on it in secondary school as well,” Mr Malone said.
“My advice for young people is really basic. Understand the money that comes in the money that goes out” – Leah McMahon, Financial Planner at Castle Capital
Financial planner
Money is money, it’s just figures, it’s the goals that are important, where the money has to go, according to Financial Planner at Castle Capital, Leah McMahon.
“My advice for young people is really basic. Understand the money that comes in the money that goes out. Be able to control your expenses and save towards your goals so that you’re not overwhelmed.”
In 2023, Ms McMahon set up a financial literacy programme for Transition Year students at Castletroy College, her former school in Limerick.
She targeted this age group, around 16 years of age, as they have a sense of how money works and many are working part time.
“It’s forming the habit, you’ll set them up,” she remarked, adding that it’s easier to get started at that age rather than in your 20’s or 30’s.
“You’ve no financial commitments at that age, so if you can teach them to save €20 out of €100 earned that habit does carry on.”
She can see the difference good habits make when she discusses financial planning with her clients, their relationship with money in terms of savings, pensions, a house deposit, especially with people whose parents encouraged saving primarily in the credit union.
As part of the programme. Ms McMahon teaches TY students about day-to-day money management and how to budget their earnings, be it pocket money or a pay cheque.
“When you have €100, 50% of it goes towards financial commitments, so when you get older, it’s going to go towards bills like your groceries or electricity.
“20% of it is supposed to go into savings and then 30% can go to whatever you want such as the cinema, clothing or if you want to put it towards a holiday.”
She covers debt management, and the importance of managing debt correctly as you move through school or college into a career, and how some loans, such as a mortgage, car loan or to upskill, are more necessary than others.
Further advice she shares focuses on not using all your savings to pay for something that will wipe you out and that it’s about having a balance.
One of the pitfalls of availing of credit was raised during her training, when students said they bought clothes online using Klarna, which allowed them to pay off the goods in instalments.
“One of those repayments being missed can go on their credit history reports, nearly like a black mark, and that’ll affect them in the future if they’re going for a loan for something that they seriously need or if they’re going for a mortgage.
“It’s about saying that you have to be careful when you get into debt and manage it properly, so you don’t have to face consequences in the future.”
Ms McMahon doesn’t remember any real discussion around money when she was in school even though she worked part-time in secondary school and college.
She was living at home so her mother paid the important bills and the money she was earning was her own to pay for what she chose – she acknowledges now that the element that was missing was the idea of saving and planning for the future.
“It wasn’t until I of came out college at 21 that I realised nobody had ever said to me to just save €20 out of your pay cheque every week and build up a fund of savings.
“Once you enter a career, the workforce, move out and enter the ‘real world’, you start to get bills. It’s all new and overwhelming and it takes a bit of time to find the balance on what to spend and what to save.”
In those early days Ms McMahon encountered other students who had been given loans or credit because they had a regular pay cheque for two days’ work and recognised a mismanagement of their money.
As she progressed in her career, she has met many clients who said they wished they had learned about personal finances in school.
“Obviously now the Irish Government have launched the National Financial Literacy Programme, because they recognise that we don’t talk about money.”
Money Smarts Programme
“We know from research that 70% of 15- to 30-year-olds worry about money and are looking for guidance on how they can manage it better, so our responsibility here is even more critical.”
Bank of Ireland’s Programme Manager for its Money Smarts programme Aoife Mahon describes their primary and secondary financial literacy programmes as “demystifying money basics”.
She outlined how the Bank of Ireland Money Smart Programme was created for teenagers who have left primary school and are transitioning into a new environment with greater freedoms and for some a part time job.
“Some are earning a wage for the first time so the Money Smart Programme is really ensuring financial capability skills are broadened and there’s opportunities for future learning.
“The programme really challenges students to actively take more responsibility for managing their daily spend.”
The programme includes financial literacy presentations based on the six pillars of financial well-being; savings, spending, borrowing, fraud, credit and debt.
It also runs two life skill workshops, a CV and interview skills workshops and a start-up workshop.
Another element of the programme is the opportunity for schools to set up a school bank on site at the school, run by the students.
More than 100 schools set up a school bank through the scheme each year. One of those schools this year is Ratoath College in Co Meath.
Out of 30 students who applied, nine were appointed roles to run the bank every Wednesday for one month within the school.
During that time, students were able to set up a Bank of Ireland account for pupils with parental permission, appropriate ID and a QR code from the bank.
One of the teachers in the school, Aisling Kelly, said it is a huge opportunity for teenagers to see what its like to work in a bank and learn the skills, and it is a helpful service for parents.
“The parents seem to be extremely impressed and delighted that the school are offering this service because, they keep saying how difficult it is for them to get the time to go with their child to open an account, and that they’re really impressed that we’re actually offering that service,” Ms Kelly said.
She said the biggest interest was among 4th year students, who are planning on getting summer jobs and want to be able to get their wages lodged in their bank accounts so they can figure out their budgeting and saving.
“They’re talking about what PAYE customers are, what your tax is going to be, income and expenditure,” she said.
“I’m then able to run my maths classes around everything that we are doing in the banking. All the theory you do in business and math is basically brought to life.”
Teachers feedback also highlighted how the presentations on fraud were a critical part of the programme and remains one of the most popular presentations.
“I think generally as a society, we’re much more aware and I think that cohort in particular will be, because they’re online so much they are the target of that kind of activity so it’s very much top of mind for them,” said Ms Mahon.
She said the best advice she has for young people is to absorb lots of positive habits because the sooner you start, not only will it influence your independence and freedom, but being in control of your finances will also help your mental wellbeing and opportunities to choose what you want to do in life.
“Take as many inspirational hints and tips and habits and start to really stick to them. Those habits will stand to you for life, and while you might not think that they’re important now,” she said.
“When it comes to post primary, where you are really faced with those life challenges around how you do manage your day-to-day finances, whether it’s starting work for the first time, going to university or taking a year out to travel. Those lessons will really stand to you and help you to be a much more successful and financially constant individual,” she added.
Revolut
Fintech company Revolut also offers accounts and features which aim to help young people develop good personal finance habits.
Their offering Revolut <18, formerly known as Revolut Junior, is a standalone app for children and teenagers aged 6 to 17.
The app has oversight by parents or guardians who can set spending limits, monitor usage, and guide learning.
Parents can also set tasks, such as housework or homework, and give monetary rewards for their completion or pay pocket money.
The dedicated app includes features such as spending analytics which shows young people where their money is going, and ‘Pockets’ which allow them save for specific goals.
Approximately a third of Ireland’s children are already Revolut <18 customers, based on the number in the Government’s 2024 edition of the State of the Nation’s Children report.
By summer, Revolut expects to have onboarded over half a million Irish youngsters, while the company is also exploring a more independent solution with greater functionality for older teens.
The company said it is also working on a set of free resources for schools as it aims to promote saving, financial tracking and financial literacy.
Malcolm Craig, General Manager at Revolut Bank – Ireland Branch, said: “Revolut <18 is yet another example of Revolut having a positive impact on the Irish market for the benefit of children and their parents, many of whom already entrust Revolut with building their own finances.
“The app builds good financial habits for children and is a key part of generating greater financial literacy among youngsters across Ireland.
“Its many features equip youngsters with essential financial literacy skills that will serve them well throughout their lives. Whether it’s used for paying weekly pocket money or for saving up funds to serve children later in life, Revolut <18 is a go-to for parents.”
