Impact of Enterprise & Financial Education

What are the impacts of enterprise education, non-formal learning, employer engagement and financial education on young people?

Enterprise education is a proactive learning process where participants apply creative ideas and innovation to practical situations. It aims to produce  individuals with the mind-set and skills necessary to respond to opportunities, needs and shortfalls, and with well-developed key employability skills such as decision making, problem solving and personal effectiveness.

To find out more about the effectiveness of our programmes, please see evaluating our work.

 

Ofsted, Getting ready for Work ¹

  • Ofsted recommend that the Department for Education (DfE) should re-visit Lord Young’s report from 2014 and promote the importance of well-defined enterprise education provision including the promotion of business understanding and financial capability.
  • Schools should ensure that there is a coherent programme to develop enterprise education, including the economic and business knowledge and skills of all pupils
  • Employers should support schools in offering a greater number of activities e.g mock interviews, participation in careers fairs and talks

 

Pfeg, London lead teachers in Financial Education ²

  • The project explored whether providing a financial education within mathematics can enhance a student’s attainment and engagement
  • Across the treatment of groups, there was a 21% increase between student’s assessments taken at the beginning of the intervention and those at the end compared to 3% increase in the control group
  • Following the project, 100% of teachers embedded financial mathematics into their schools maths curriculum

Education and Employers, Contemporary transitions: Young Britons reflect on life after secondary school and college ³

  • Young adults who recalled taking part in career talks, enterprise competitions and work experience with employers at both pre and post-16 were significantly less likely to be NEET than comparable peers who had missed out on the activities whilst in school
  • Enterprise competition at 14-16 where respondent felt school had prepared them well for adult working life was associated with 11% higher wage premium (£1,739 in cash terms)

 

Pearson / University of Exeter, Employability and Higher Education: A review of practice and strategies around the world

  • Soft skills are by far the most desired attributes in graduates around the world such as an individual’s ability to listen well, communicate effectively, be positive, manage conflict, accept responsibility, show respect, build trust, work well with others, manage time effectively and work under pressure.
  • Enterprise education provides individuals with the skills, tools and insights to enable them to create ideas and make them happen

 

All Party Parliamentary Group, APPG Report on Financial Education for Young People ⁵

  • Only 17% of secondary school teachers have personally received, or are aware that a colleague has received, training or advice on teaching financial education
  • 58% of secondary school teachers in England would like to receive more training in this area
  • Only 28% of secondary school teachers in England believe their school has put more emphasis on financial education since it became statutory. 42% feel there has been no change in emphasis at all
  • The report suggest that there are 4 main areas that should take priority for policy makers in order to strengthen financial capability in the UK: Strengthening primary and secondary provision, improve teacher confidence and skillset, encourage coordination across the sector by signposting best practise, measuring long term impact

 

ONS, Young people’s well-being and personal finance: UK 2013 – 2014 ⁶

  • 8% of young people (aged 16 to 24) found it difficult or very difficult to get by financially in 2013 to 2014, down from 15% in 2009 to 2010.
  • Young people who were students in 2013 to 2014 were least likely to be dissatisfied with their household income (22%), but most likely to consider they will be worse off financially in the future (13%)

 

Money Advice Service, Habit Formation and Learning in Young Children⁷

Adult money habits are set by the age of 7 years old

  • Children under 8 years old have not developed an understanding of the difference between ‘luxuries’ and ‘necessities’

See also: The Financial Capability of Children and Young People (MAS, 2016)

 

Money Advice Service, Young Adults’ Financial Capability

financial-capability-stat2

  • Young adults were both more likely to have financial goals over the next five years (69%) and to have plans to achieve those goals (41%) (compared to all adults aged 18+)
  • 69% of young adults reported having financial goals over the next five years (compared to 53% of all adults aged 18+)
  • 41% had plans for their financial goals (compared to 36% of all adults 18+).
  • Young adults had the lowest levels of financial confidence compared to other age groups. Only 45% rated themselves as ‘very confident’ (compared to 58% of all adults aged 18+)

More details:

¹ Ofsted, Getting ready for Work: release date: November 2016. This report examines how secondary schools are preparing young people for the world of work through enterprise education and work-related learning

² Pfeg, London lead teachers in Financial Education: release date; September 2015. This report outlines the impact of the London Lead Teachers in Financial Education project, providing an overview of the project along with evidence of the impact that delivering mathematics on a greater financial context can have on attainment, engagement and understanding of students, as well as developing essential personal finance knowledge, skills and attitudes.

³ Education and Employers, Contemporary transitions: Young Britons reflect on life after secondary school and college: release date; January 2017. This report sets out findings from a survey of young British adults aged 19-24. The survey investigates the experiences of these young people as they engage in transitions which take them from education towards the working world. The focus of the report is on activities commonly undertaken by schools and colleges to help prepare them for such transitions, specifically focusing on the most common employer engagement in education activities.

⁴ Pearson / University of Exeter, Employability and Higher Education: A review of practice and strategies around the world, release date: March 2016. Provides a review of the strategies in place around the world to improve the employability levels of students and graduates upon leaving HE.

⁵ All Party Parliamentary Group, APPG Report on Financial Education for Young People, release date: 23 May 2016. This follows an inquiry that Young Enterprise have run in Parliament (as secretariat for the APPG) into the effectiveness of financial education and policy recommendations for strengthening this area.

⁶ ONS, Young people’s well-being and personal finance: UK 2013 – 2014, release date: 11 May 2016. This report measures young people’s well-being and in relation to their financial situation.

⁷ Money Advice Service, Habit Formation and Learning in Young Children, release date: 23 May 2013. The report highlights the power of parents to foster money skills at home – core behaviours which they will take into adulthood will affect financial decisions they make during the rest of their lives.

Money Advice Service, Young Adults’ Financial Capability, release date: 2016.This report provides insights into the factors that influence young adults’ financial goals and planning, financial confidence and engagement in financial matters.

 

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