Why we include economics at the start of our course

One question that some teachers have asked is why our course starts with a section on background economics. Some teachers have said that personal finance is meant to be “personal” and not about the economy at large. Others feel that there is no point teaching economics in our course because their schools offer economics at GCSE and A-level.

We’re always willing to adapt our course to suit the needs of teachers and pupils. However, we believe that keeping economics within our course is hugely important because a basic understanding of concepts such as inflation provide important context for financial decision-making.

Without understanding the impact of inflation on savings over the long-term, teenagers will not appreciate why it’s important not only to save but also to invest. Thanks to automated investment services such as Scalable Capital or Wealthsimple, investing has never been more feasible for the average person. However, unless young people understand that inflation erodes savings over time, they won’t make use of these valuable services.

More importantly, unless teenagers understand inflation, how are they supposed to understand the significance of the Bank of England increasing interest rates? And, if they don’t understand the importance of rate increases, how will teenagers appreciate the risks associated with one day taking out a mortgage?

More generally, if teenagers learn about fiscal and monetary policy, albeit at a high level, they can better understand how and why the nation’s democratic institutions make certain decisions. As a result, they can make more informed political decisions based on their own informed interpretation of the country’s economic needs.

As for the point that teenagers can study GCSE and A-level economics if they wish, this is essentially an acknowledgement that learning economics is optional; in other words, most pupils in the UK do not study these subjects. Ultimately, nobody makes personal financial decisions in a vacuum; financial decisions are inextricably linked to the broader economic environment.

Therefore, we strongly feel that economics belongs in our course, as it sets the context for the following sections on personal finance and economics. That being said, we are always keen to hear teachers’ perspectives on course matters.