Both primary and secondary school pupils will learn more about the fundamentals of money, as part of a revitalised curriculum.
Following a curriculum and assessment review the government has introduced plans to equip pupils “to thrive in the modern world”.
Primary pupils will learn more about the fundamentals of money, with the government recognising children are now consumers often before they reach secondary school.
This will be delivered through citizenship lessons which will become compulsory in primary schools.
Children encounter spending, digital payments, advertising and influence before they can even spell money, and they deserve the tools to navigate those experiences
The review, conducted by professor Becky Francis, said financial education includes understanding core financial concepts such as budgeting, debt, interest, mortgages and pensions, alongside an awareness of how mathematical concepts can be applied to real-world scenarios.
It recommended that mathematical concepts relevant to financial education should be introduced in maths before students are exposed to them in other subjects.
For example, before the topic of compound interest arises in financial education, students should have learnt about percentages in maths first to provide the foundational knowledge required.
Carol Knight, chief executive of The Investing and Savings Alliance, said: “Teaching children about money is like explaining the rules of a game they’re already playing; with greater understanding, they can take part with confidence rather than uncertainty.
“Children encounter spending, digital payments, advertising and influence before they can even spell money, and they deserve the tools to navigate those experiences.
“This review rightly recognises that financial education is a core life skill, not an optional extra.”
Primary pupils will also learn how to spot fake news and identify misinformation and disinformation to be able to challenge what they see and protect them from online harms.
Ranald Mitchell, director at Charwin Mortgages called this a “long overdue step”, saying children were growing up in a world where “misinformation spreads faster than playground gossip”.
When we approached schools recently to offer free sessions on this, the response was that they couldn’t spare class time for anything not in the curriculum or exams
“Giving them the tools to spot fake news, online scams and think critically is essential.
“Teaching financial literacy is equally important, empowering generations to understand money and make better decisions online,” he added.
Stephen Perkins, managing director at Yellow Brick Mortgages, said he was glad to see financial education become part of the national curriculum with “far too many” children leaving school ignorant.
“When we approached schools recently to offer free sessions on this, the response was that they couldn’t spare class time for anything not in the curriculum or exams.
“Long term, higher financial literacy will be a big boost for the economy and help develop more entrepreneurs,” he said.
Thanks to the Newspage community for responding to FT Adviser’s requests for comments.
alina.khan@ft.com
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
