Financial literacy will become a compulsory subject for all primary and secondary schools in England, the Government has announced, with changes set to be in place by 2028.
Under the changes, that aim to modernise the national curriculum, schools will be required to teach content on budgeting, compound interest, money management and mortgages across both primary and secondary schools.
From September 2028, primary school pupils will be taught about the basics of money, as well as how to recognise fake news as part of media literacy teaching, and about climate change.
This content will be wrapped up in new compulsory ‘citizenship’ classes, the Department for Education said.
The changes come in response to the curriculum and assessment review that was published on Tuesday.
Becky Francis, chief executive of the Education Endowment Foundation and leader of the review, said: ‘Financial literacy was the most highlighted area of importance by parents and the one topic that was consistently raised by every single focus group with young people.’
Research from GoHenry shows that some 84 per cent of school age children say they want to see more financial education on the curriculum
The review said evidence shows financial education content in the current national curriculum is not always taught to children in schools, and that only a third of children remember learning about money at school and finding this teaching useful.
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Kristina Church, group head of sustainability at Aberdeen, said: ‘We know that poor financial capability can lead to a risk of multiple issues, from exacerbating mental health problems to struggling to access good employment.’
Currently, financial education is only compulsory in local authority-run schools, this means that many schools don’t have to teach financial education, and don’t follow a set curriculum.
Research from GoHenry shows that some 84 per cent of school age children say they want to see more financial education on the curriculum.
Meanwhile, fintech platform Raisin said three quarters, some 76 per cent, of all people say schools should teach more about money.
The review said: ‘Greater financial literacy, which is a consequence of a suitable financial education, can bring benefits to both individuals and to the economy.’
‘Financial education should not be delayed until later life.
‘Research shows that children’s habits and attitudes towards money develop at an early age, including their disposition to spend or save, and this underpins their financial capability in adulthood.’
Kate Steere, money expert at Finder, said: ‘This is a big step forward, but the hard work starts now.
‘After years of campaigning, we’re finally closer to every child in England receiving the money skills they need for life.
‘However, the devil will be in the details.
‘For this to make a meaningful difference, schools will need support and funding.
‘Resources are already stretched, so the government will need to provide dedicated funding, training and time to ensure schools can deliver meaningful financial education – not just squeeze it in.’
Kevin Mountford, co-founder of Raisin, said: ‘The next challenge is ensuring that what is taught is practical and relevant.
‘Giving young people the tools to understand money from an early age will help them build financial confidence that lasts a lifetime.’
Improvements to financial literacy in the UK could in turn boost the country’s economy, according to research from the Centre for Economics and Business Research and Principal Financial Group.
Louise Hill, founder of GoHenry, siad: ‘We need to learn from the fact that just adding financial education to the secondary school curriculum over the last 10 years hasn’t worked well enough.
‘We must ensure that money lessons form a compulsory part of the timetable, teacher training is delivered, expert resources provided, funding made available and that it’s assessed.’
What do you wish you were taught about money at school? Get in touch: editor@thisismoney.co.uk
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