Children to learn about money matters like saving, mortgages and the financial market
Source: Department for Children, Schools and Families
04 Jan 10
Children to learn about money matters like saving, mortgages and the financial market -
Schools Secretary Ed Balls and money expert Martin Lewis today stressed the importance of children learning about money matters so that they learn the best way to save money and how to pick financial products like mortgages and pensions.
As part of the new compulsory PSHE curriculum, all pupils from the age of 5 to 16 will be taught about handling money, savings and the financial skills they need as adults.
Starting at primary school through to secondary school, pupils will learn age appropriate information:
• 5 – 7 year olds could be taught how different notes and coins, and how to look save money for example in a piggybank
• 7-11 year olds could learn about managing a bank account and savings account, and about budgeting.
• 11-14 year olds might have lessons on how credit cards, mortgages and loans work. Or about managing personal finances including paying household bills etc.
• 14-16 year olds could explore how money problems can have an impact on people – learning about debt and effective budgeting skills.
Also later this year, new standards for those working with children in residential care and fostering are due to come into force, which will further strengthen the importance of giving information and support young people need to manage money and plan finances so they may reach their potential and achieve economic wellbeing later in life.
Secretary of State for Children, Schools and Families, Ed Balls, said:
“It’s vital that all young people leave school with a basic understanding of how to manage their money sensibly. So it’s really important that we teach our children about money matters like pensions, responsible saving and effective money management.
“That’s why I’ve announced Personal, Social, Health and Economic education, which includes economic wellbeing and financial capability, will be compulsory for all children from September 2011. We need to make sure all young people have the information they need to prepare them for the complexities of today’s modern world so that they can give security to their families and prepare for the future.“
Martin Lewis, creator of MoneySavingExpert.com, said:
"Finally we're getting somewhere. We encourage our youth into debt when they go to university, but the disgrace is we've never educated them about debt."
The programmes of study, which outlines the broad topics children will be taught in the new financial education curriculum, will be consulted on later this year.
It will build on the My Money programme – a £10m financial education programme in schools, which is a key part of the Financial Capability Action Plan launched by HM Treasury and the Financial Services Authority (FSA) in July 2008 to help people manage their money effectively. My Money is the first project to provide an integrated approach to personal finance education from when a child first starts school through to the end of secondary school. The programme, which is being managed the by the Personal Finance Education Group (PFEG) on behalf of the DCSF, will run for three years from 2008 until 2011.
ENDS
Notes for editors
1. A consultation on the revised National Minimum Standards (NMS) for Adoption, Children’s Homes and Fostering closed on 17 December 2009 and findings will be published shortly.
2. The revised NMS is due to come into effect in September 2010 and implemented from April 2011. This is to give providers of services and Ofsted sufficient time to prepare ahead of the new standards being implemented. The standards will mean foster carers, adopters and care homes will need to:
• provide opportunities to children in their care to manage money, plan their finances and understand about the costs of utilities and other services;
• support children to develop the range of self care skills that will be needed as they make the move to greater independence – including capacity to budget for, plan and prepare nutritionally balanced meals; time management and an understanding of the expectations necessary to manage in the world of work; self-care and social presentation;
• help children to develop financial capability and know about universal entitlements to financial and other support including arrangements for claiming welfare benefits where this is identified as a need.
3. The current NMS for children's homes mentioning that children should be 'encouraged to manage their own finances through help with budgeting and banking, and are given as much freedom as possible in making decisions about spending their own pocket money or earnings.' The Fostering NMS does not mention this at all. So the revised NMS being consulted does include a much greater emphasis on supporting the child or young person to develop life skills such as being able to manage money.
4. The new ‘economic wellbeing and financial capability’ programme of study give teachers a more flexible, less prescriptive framework for teaching, creating more scope to tailor the curriculum to meet the needs of each individual student.
