Mark Brazendale, chief executive officer of Salford Credit Union, believes the upcoming curriculum change in 2028 will tackle a widespread financial illiteracy that leaves many residents vulnerable. The Credit Union provides loans to anybody living and working in Salford.
Mr Brazendale said that most loan applicants simply want to know if they can have the money, often showing little concern for the interest rates, setup fees, or early repayment charges.
He said: “Learning about these in schools should mean that people will be fully informed as to what is a good deal, which enables them to make informed decisions.”
The credit union is a last resort for a large portion of the community, offering loans from £100, where high street banks only lend a minimum of £1,000.
Mr Brazendale revealed that applications declined due to previous poor financial decisions are rising year on year.
He noted that many young people are not aware of the impact of missing or making late payments, only realising when their credit rating is too low for a loan.
“What we’re seeing are people applying for small loans with us with between 25 and 38 buy now pay later agreements,” he explained. He added that young people on low incomes cannot afford to repay the total monthly amount.
“Young people often misunderstand the concept of affordability, with some applying for a £10,000 car loan while only having a monthly income of between £700 to £1,000. They fail to factor in insurance, tax, and fuel costs.”
When asked for the most valuable financial habit students should learn, Mr Brazendale replied: “I would say that when they start work they should save a good per cent of their salary for a rainy day and borrowing really should be a last resort and not become the norm.
“A youngster living at home should aim to save 30 per cent of their income, while someone in social housing should aim for 10 or 15 per cent.”
The Salford lender also warned that identity theft is a major new fraud red flag, urging young people to shred financial documents instead of discarding them. He hopes the curriculum change will encourage senior schools to start working with the union for practical support.
While the Credit Union already works with various partners to deliver financial education in junior schools, he hopes the new curriculum will mean senior schools start “banging on our door asking for help.”
The new curriculum will be taught from September 2028, making citizenship compulsory in primary schools to cover the fundamentals of money. Financial education in secondary schools will be strengthened with deeper coverage of debt, mortgages, and pensions.
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