Financial capability in Scotland
Background to the Scottish provision
Learning and Teaching Scotland (LTS) is the government appointed body reviewing and supporting the curriculum in Scotland. You can find out more about them by visiting their website, a link to which is below.
LTS supports the view that financial education makes a valuable contribution to Curriculum for Excellence and its four capacities, Successful Learners, Confident Individuals, Responsible Citizens and Effective Learners.
The guidance to Scottish schools on financial education covers the 3-18 curriculum. Its central theme is that, as part of their general education, all young people should have opportunities to acquire a broadly based financial capability, defined in terms of understanding, competence, responsibility and enterprise.
Curriculum for Excellence sets out benefits for both individuals and society. For individuals, education for financial capability should help them to:
- Have a positive regard for self and for others and their needs (Confident Individuals, Responsible Citizens)
- Develop the, skills, understanding, attitudes and behaviours that enable them to participate effectively in society (Successful Learners, Confident Individuals, Responsible Citizens, Effective Contributors)
- Identify and review the values that they and society hold and recognise that these effect attitudes and actions ( Responsible Citizens)
- Take increasing responsibility for heir own lives and plan for their future (Successful Learners, Confident Individuals, Responsible Citizens)
- Develop a sense of responsible stewardship of the resources at their disposal (Responsible Citizens)
- Recognise the personal and practical importance of learning throughout life. (Successful Learners)
For society, it is expected that financial capability will help to:
- Develop informed, skilled, thoughtful, enterprising and adaptive people who are able to contribute through the work they do, to sustainable economic development
- Foster a society whose citizens are empowered to handle financial and economic issues competently and with sensitivity to the possible impact of financial decisions on their own physical, emotional and mental health and well-being, on other people and their relationships with them and on the environment.
The programme in Scotland, as part of the 3-18 Curriculum for Excellence, is cross-cutting and inter-disciplinary, based on the CfE Experiences and Outcomes for each of the eight curricular areas. Under-pinning all programmes within Curriculum for Excellence is the expectation that every teacher is a teacher of Numeracy, Literacy and Health and Well-being. A thematic / topic framework is given which schools may adapt to their particular needs. The framework is thus applicable to all ages but it would be for the teacher / school to decide if all elements were applicable for a particular age group or class and how the elements were applied.
The four main elements of Financial Education in Scotland with their sub-divisions are as follows:
Financial Understanding
- The nature and role of money in society, including foreign currency
- Sources of income
- Taxation, spending, saving and investment
- Credit and debt
- Financial services, products and advisory services
- The impact of advertising, ICT and the media
Financial Competence
- Keep financial records
- Analyse of financial information
- Assess value for money
- Prepare and use budgets
- Make informed financial decisions
Financial Responsibility
- Take increasing responsibility for making decisions with respect to themselves
- Analyse the potential impact of their financial decisions on other people and the environment both locally and globally
- Analyse the impact of other people’s financial decisions on them and the environment both locally and globally.
Financial Enterprise
- Evaluate potential risks and returns
- Use financial and other resources in an innovative and confident manner
- Apply knowledge and skills creatively in a range of situations.
