The New Model Business Academy (NMBA) has launched a free financial education initiative to improve financial competency amongst young people.

The programme, sponsored by M&G, Zurich, Vanguard, BMO Global Asset Management and Brand Financial Training, will be delivered by financial advisers who have contacts at schools, colleges and other youth groups in their areas, and targeted at those aged between 16 and 18 years.

The launch of this initiative follows research by NMBA last year which showed that 97% of advisers would be interested in becoming involved in financial education in schools, and almost 200 have already registered their interest in taking part.

The campaign provides resources which include ways in which to make contact with schools, key information for use presenting and the ‘Young Person’s Guide to Money’, a publication designed to give young people a basic understanding of financial fundamentals which will assist them in the financial decision making throughout their lives.

The guide covers a wide range of areas including earnings, taxation, savings, budgeting and borrowing in plain English, and includes a glossary of terms.

Tom Hegarty, managing director of NMBA, said: “One only has to look at the amount of debt and insufficient protection and savings provisions in the UK to understand the long-term issues that a lack of financial competency can cause, both to individuals and the economy as a whole.  Despite the inclusion of financial capability in the National Curriculum, schools continue to experience difficulty allocating time and space in the curriculum to deliver financial education.

“We believe advisers are perfectly placed to pick up the mantle of delivering this education, given their unique understanding which couples not only the technical aspects of financial advice, but also how to consider one’s circumstances holistically. We are very proud to be launching this programme to support young people and believe that better education about financial products and planning could make significant inroads into proactively tackling these issues, and ensuring a brighter financial future for the next generation.”