The new programmes of study for Key Stages 3 and 4 encourage teachers to draw on a wide range of contexts to illustrate how maths is used in society - including the financial context.
For example:
- Within applications and implications of mathematics teachers need to develop 'understanding that mathematics is used as a tool in a wide range of contexts' - such as in making financial decisions in personal life.
- Under range and content: number and algebra, the study of mathematics should include: 'rules of arithmetic applied to calculations and manipulations with real numbers'.
This includes using mental and written arithmetic to make sense of everyday situations such as, among other things, financial statements and transactions.
The revised framework from the National Strategy will include the key concepts and processes in the national curriculum which now place greater emphasis on financial education.
pfeg (Personal Finance Education Group) can help you introduce money management into maths, through our Learning Money Matters initiative.
Financial capability, like other areas of learning, is made up of knowledge, skills and attitudes. The knowledge required consists primarily of key financial ideas, products and services. The skills needed to process financial information are mostly mathematical. Financial decisions are also strongly influenced by attitudes to money and products, and so education for financial capability must also take these into account.
"'Functional' skills", as defined by the DfES ('Functional skills' - Your questions answered; DfES, October 2006), "are practical skills in English, mathematics and information and communication technology (ICT) that allow individuals to operate confidently, effectively and independently in life".
Financial situations provide real life contexts where students can use and apply their functional mathematical skills. A recent Ofsted survey found about half of the mathematics lessons seen did not stimulate students to think for themselves and apply their knowledge and skills in unfamiliar situations, and hence did not promote a really secure understanding of mathematical ideas. The inclusion of financial and other realistic contexts therefore can have a crucial role in improving the mathematics curriculum.
Financial capability is probably best developed through both the mathematics and the personal development curriculum (PSHE, citizenship, work-related learning and enterprise). Mathematics can help where calculations are required to explore financial situations and make sensible decisions. Specific discussion of financial products and financial decision making may fit best in the personal development curriculum.
Key elements of financial capability relevant to mathematics include:
- Understanding and calculating earnings and deductions, benefits and student finance;
- Making decisions about purchases, including value for money and means of payment, using cash, credit or debt;
- Managing income and expenditure, e.g. understanding bills and statements, budgeting for independent living, or for an enterprise project;
- Understanding and comparing the costs of fuel and water for homes;
- Planning saving and borrowing;
- Comparing savings and investments, including interest rates, past performance and risk and return;
- Comparing different types of credit and loans and what they cost.
- Understanding how to plan for and manage circumstances involving debt;
- Identifying risks using probability and how to protect against them through insurance.
Here are some examples of using finance in functional mathematics from the DfES:
Firstly, at Level 1:
"A couple reviewing their utility bills are able to calculate their average electricity usage, with seasonal variation, and predict and plan general expenditure over time, minimising financial pressures and personal stress."
And at Level 2:
"A student planning her transition to further or higher education is able to research and make informed judgements about various banking products available. Reviewing competitive packages, including joining offers, different interest rates, financial charges and savings benefits, the student is able to calculate the most suitable, best value product for their lifestyle. Tailoring personal banking to meet their needs, the student can begin to experience the excitement of being a self-determining young adult."
Read the full report "'Functional skills' - Your questions answered" (DfES, October 2006) here.
Developing financial capability through mathematics and PSHE
The DfES commissioned pfeg to produce a CD-ROM resource for use in maths and PSHE.
It is designed to fulfill a stated need among many teachers who want to use financial contexts in mathematics.
The resource explores different ways of teaching mathematics to
enable young people to appreciate the everyday relevance of the
subject.
Click here
to order your free copy or download the full resource.
See the resources section for further resources which can be used for teaching personal finance through mathematics.
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