What is financial capability?
Financial capability can be split into three areas, as follows:
- Personal: understanding budgeting, how a
bank account works, managing credit and debt, planning savings
and investments, how to choose between competing offers.
- Civic: a basic knowledge of taxation, why we pay direct and indirect taxes, understanding basic economics and how government raises and spends money.
- Business and enterprise: an appreciation of the differences between employment and self-employment and wider business financial skills.
How can financial capability be defined?
- Attitudes – taking responsibility for financial decisions, questioning the claims made for financial products and services
- Skills – thinking ahead about financial needs, learning to plan and budget and match this to actual spending
- Knowledge – understanding financial services and products to make informed choices
Financial Capability through Personal Financial Education - Guidance for Schools at Key Stages 1 & 2 and Key Stages 3 & 4 produced by the Department for Education and Skills in 2000 demonstrates ways in which financial capability can be developed across all key stages. The three themes covered are financial understanding, financial competence and financial responsibility. Each pfeg Quality Mark resource is mapped against these themes as part of the accreditation process.
For curriculum information on Northern Ireland or Scotland, click on the links above. For Wales, click the link on the left.
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