Knowing how to manage money is vital in today’s society.

But the skills involved are rarely taught, and many of us struggle with the day-to-day business of keeping our purse strings in order. But with so many different options available, and so much jargon to negotiate, it is easy to lose you way. Many of us incur debts due to our inability to manage money, and end up with serious financial problems.

This week, a study by Barclays revealed that young people are entering adult life with ‘dangerous gaps’ in their money management skills. Up to half of 14 to 25-year-olds are unable to make a distinction between being in credit and overdrawn on a bank statement, and one in eight does not know what an overdraft is.

Across the country, teaching money management skills in schools is helping children to get to grips with their finances, and to be prepared for when they leave, find work, and possibly have a home and family to support.

My Money Week, which runs until Sunday, gives pupils in every school in Bradford the chance to learn more about money.

The aims of the national initiative – run in partnership between the financial charity the Personal Finance Education Group and Barclays – is to support teachers in educating young people about money through fun, engaging activities.

The project is aimed at both secondary and primary schools, and areas covered include attitudes to money, bank accounts, bankruptcy and insolvency, pensions, savings, benefits and allowances and loans and credit. A free resource pack also contains information about pocket money, coin recognition and student finance. Online games for all ages also feature.

Last year Beckfoot School and South Craven School took part, and this year more than a dozen schools and colleges in the Bradford district have signed up.

Bradford College is among those taking part this week. Lecturer in personal and social development Louise Mollicone, whose lessons include finance, budgeting and employability skills, believes it will be of enormous benefit to the students.

“It is so important as it covers finance and budgeting for everyday life when they leave home. Some pupils don't know how to budget – some will spend £9 of their weekly £15 budget on lunch.”

She adds: “Children need to know where money comes from and learn about its value. Those who are about to start work will need to know how to manage their wages, about different types of bank account, tax, national insurance, how to arrange an overdraft, and, even though it may seem years away to them, they need to learn about pensions schemes, and how to plan ahead for the future and for the unexpected. Some students don't know anything about finance because their parents do it all for them.”

Louise, who is based at the college’s Bowling Back Lane department of engineering, works closely with Polar Ford, and says visits to the car dealership have shown how little they understand about financial terminology. “They talk about buying cars but don't know what APR means.”

She adds: “A lot of my students say they want to open their own businesses and will need to know about all of this.”

In support of My Money Week leading online credit information provider Equifax is backing calls for greater financial education in schools as research by the firm found that more than 90 per cent of parents believe that it should be part of the curriculum. “Young people live in a world where debt is a fact of life so it is imperative that, as early as possible, young people understand how best to manage their finances,” says external affairs director Neil Munroe.

Tracey Bleakley, chief executive of Personal Finance Education Group, says: “It is crucial to teach young people how to manage money. Personal finance is an incredibly complex area and we need to give every school-leaver the skills, knowledge and confidence they need to make informed decisions.

“Money is a big part of our day-to-day life. We make financial decisions all the time, even when we may not realise it, so financial education is beneficial in a very immediate, practical sense. The benefits go far beyond the day-to-day, however. Financial education leads to better budgeting, savvier consumer decisions and a higher likelihood of saving for the future. All of these things have enormous benefits in all areas of life, from money to health and happiness.”

For more information about My Money Week, visit pfeg.org.