Financial Capability through Personal Financial Education - Guidance for schools at Key Stages 1&2
The outcomes below refer to the DfEE (now Department for Education) guidance, produced in 2000: 'Financial Capability through Personal Financial Education: Guidance for Schools at Key Stages 1&2'. This guidance remains current. Each primary resource on the pfeg website is mapped against these outcomes to show what financial objectives the resource could cover. For more information, please download the guidance from the bottom of this page.
Key Stage 1 – Novice Understanding
Financial Understanding
What money is and the exchange of money
Coin recognition
– recognise the coins and notes that we use e.g. Describe and distinguish between various coins during carpet time.World currency
– understand that different countries use different coins and notes e.g. Pick out foreign coins from a selection and discuss them.The exchange of money and coins
– understand the exchange of coins and notes for goods e.g. Exchange goods for coins in a role-play situation, for example a class shop and be able to count out the right amount of money.
Where money comes from
Different sources of income
– recognise that there are regular and unpredictable sources of money e.g. Discuss where money might come from for example earnings, allowances, benefits, pocket money gifts, winnings.
Where money goes
Spending
– be able to talk about things that they may want to spend their money on e.g. Discuss how the class might spend £50 on resources.Household expenses
– recognise that adults also have to spend money on familiar things like household expenses e.g. Use and investigate food bills, utility bills and cards, etc. in the role-play area.
Financial Competence
Looking after money
Keeping money safe
– know how we can keep money safe - either by giving it to a responsible adult or locking it away e.g. Decide where to keep class trip money.Financial records
– begin to understand the importance of keeping financial records e.g. Organise a role play bank which keeps track of children's imaginary savings over time in the context of a class project on 'The Jolly Postman' by Janet & Alan Ahlberg.
Spending money and budgeting
The exchange of money
– know that we have to pay for what we buy e.g. Go on a class trip to the shops.Ways to spend money
– be able to consider possible ways of spending money e.g. Brainstorm different ways in which £5 could be spent.
The wider implications of finance
The cost of unexpected loss
– understand the consequences of losing money or having it stolen e.g. Discuss if we lose something that needs replacing, what does this mean for the money we have?
Financial responsibility
Making personal life choices
Deciding what to buy
– choose how to spend money e.g. What would you do if you were given £10?The value of money
– begin to talk about the value of money e.g. Discuss whether or in what circumstances, £5 is a lot of money?Financial satisfaction
– begin to be able to talk about how spending money and our satisfaction from the purchase may vary e.g. Discuss children’s choices in the context of 'Would you rather...' by John Burningham.
Implications of finance
Consequences of not budgeting
– begin to understand that there are consequences to having more or less money e.g. Discuss questions such as: What happens if you have no money to buy sweets? Or for the bus home? Or if the school has no money?Different standards of living
– begin to understand that people have different standards of living in different countries e.g. Find out about different incomes and prices in different countries.
Key Stage 2 – Developing confidence
Financial Understanding
What money is and the exchange of money
Different forms of money
– know about other forms of money: cheque books, credit and debit cards and how the payments are made in these cases as well as coupons and vouchers e.g. Find the total cost of a shopping basket of goods and write a cheque to that value.Different ways to pay
– understand that cash isn't the only way to pay for goods and services e.g. Investigate and compare Internet and mail order shoppingCredit
– begin to understand the concept or credit e.g. Investigate different credit deals on the high street. Calculate and compare the repayments using simplified examples.
Where money comes from
Earnings
– understand how we get money for work - earnings e.g. Research different earnings using vacancies advertisements in a local paper.Benefits
– understand that we may get money when there is no work or insufficient work - benefit payments - and how this is paid for e.g. Discuss and compare what happens to people with no work nowadays and in Victorian times.Retirement and pensions
– understand that we need money in retirement - pension - and how this is paid for e.g. Discuss retirement in the context of reading a class book about retirement such as 'The Granny Project' by Anne Fine
Where money goes
Financial commitments
– recognise household expenses and regular financial commitments e.g. Find out about mortgage, rent utility bill and cards, insurance, etc.Deductions from earnings
– begin to understand why money, such as tax or pension contributions, is deducted from earnings e.g. Discuss how money deducted as tax is used to pay for things like schools.
Financial Competence
Looking after money
Bank/building society accounts
– understand keeping money safe by putting it into an account (giving it to a bank building society, or Post Office to look after) e.g. Decide on appropriate ways to keep £1, £100. £10000 safe.Keeping financial records
– understand the importance of keeping financial records e.g. Discuss how you would know if you had lost some money? Find out how the school keeps track of its money.Statements and receipts
– know about some official financial records e.g. Compare bank statements, till receipts, credit card vouchers etc.
Spending money and budgeting
Saving
– understand that we may need to save if there isn't enough money for everything we want to or have to buy e.g. Brainstorm a dream shopping list and discuss which items might be saveable up for and how they could be saved forWhere to save money
– understand that money boxes aren't the only ways for saving money (See Looking after money) e.g. Discuss whether it is safest to keep money in a pocket, purse, money box or savings account.Financial planning
– begin to be able to plan and think ahead e.g. Involve children in planning ahead to borrow money from the school for a medium term class project
The wider implications of finance
Insurance
– begin to understand the principles of probability and insurance e.g. Is it worth spending money to insure your house against alien attack? What about storm damage? Or theft?Interest
– understand that we may get money from money by saving e.g. Research and compare different ways of saving money including ease of access and interest rates.
Financial responsibility
Making personal life choices
How to spend money
– deciding how to spend money e.g. What would you do if you were given £10? £100? £1000? £10000?Prioritising needs and wants
– balancing needs and wants, and prioritising what gets first call on a limited supply of money e.g. Discuss balancing needs and wants against a limited budget in the context of reading an issues book such as 'The Bed and Breakfast Star' by Jacqueline WilsonTypes of debt
– understand the difference between good debt (planned and manageable) and bad debt (unplanned or unmanageable) e.g. Investigate mobile phone charges. Which deal is the best value? On which deal would you find it easiest to manage your spending?Assessing value for money
– be able to assess best buys in a variety or circumstances e.g. Is the biggest box always the best value? Are the most expensive trainers worth It? What would you want to spend one million pounds on and why?Spending satisfaction
– be able to discuss how spending money and our satisfaction from the purchase can vary, looking at how long things last, how well they perform and how long we are still interested in them e.g. Discuss and compare the monetary and personal value of past and present crazes tamagotchis, yo-yos, Pokemon) with a pair of trousers, and a birthday party
Implications of finance
Inflation
– understand that standards of living vary across time and place e.g. Compare earnings and prices nowadays with Victorian times. Discuss why XXX are appealing for international aid. What do they want? How could' we help?Ethical financial decisions
– understand that there is an ethical dimension to financial decisions e.g. Discuss the environmental implications of different products. Is it worth paying more for a product that does less environmental damage?
