Finance experts help children from London's East End win with money

Children from Poplar have been learning about financial planning in an innovative partnership between a local housing association and the Institute of Chartered Accountants (ICAEW).

One hundred 8-12 year olds from estates managed by Poplar HARCA (Housing and Regeneration Community Association) in Tower Hamlets east London, learnt about managing money through a series of quizzes, physical games and contests with the Institute’s staff and accountants, during a day out at the Chartered Accountants’ Hall in Moorgate.

The final exercise involved teams planning the attractions for Poplar HARCA’s free family festival on 23 August on a set budget. Each team presented its ideas to a ‘Pop-Idol’ type panel of judges.

Asim Iftikhar, community regeneration manager at Poplar HARCA, believes that the day could become a model for teaching financial awareness at an early age to avoid problems later in life. The association already works closely with residents to help them reduce debt and improve their financial management.

He said: “We devised this day to help children gain an understanding of financial planning as early as possible.  It’s also much more than knowing how money works.
"It's about helping to inspire our young people to believe in a positive future for themselves and their families. Children learn more when they are enjoying themselves and the rap music they performed showed how they can relate the lessons to their home lives. The day has been a lot of fun for everyone.”

Comments from the children who attended confirmed the day’s success. Tayla Hudson, age 11, from Bow said: “The day was fun. I’ve learnt to think about money: how you earn and give it away. When you know how much something costs, you know how much to give at the till and how much change you should get.“In future, I’ll know not to waste money on things I don’t really need, like sweets, or on things that aren’t worth it.”

James Marling, age 11, from the Burdett estate, added: “Guessing how much stuff costs, like food and drinks, was good. We learnt how to use and spend money wisely but also to work together as a team. I’m quite good at maths. I count up the coins that Daddy saves and when he needs money, I count it out. But the day still helped. Having to work out maths problems in three minutes was difficult."

Graham Durgan, who leads the Institute’s financial literacy initiative, said: “It’s the easiest thing to run up debt, whatever your income is. The key aim here is to pass on some of our knowledge about money and help young people understand that they shouldn’t spend more than they’ve got.

“As a major financial institution, I believe we should contribute to the health of the country. As a nation we need to be more financially aware to avoid building high levels of debt, especially in today’s economic climate, and this is one area where we can make a positive contribution.”
 
With personal debt running at £1.2 trillion in this country, and fewer than one in three people saving for a pension, the scheme is the result of a growing need to increase the population’s financial capability.