Financial education is a crucial life skill that can shape our future monetary wellbeing. Yet, surprisingly, only one in three children currently receive any form of such teaching at primary school level. This alarming statistic has prompted a cross-party group of MPs to take action, calling for a significant change in our education system.
The Current Situation
As it stands, financial education is not a mandatory part of the primary school curriculum in England. While some aspects of money management are touched upon in maths lessons, there’s no comprehensive approach to teaching children about personal finance. This gap in education leaves many young people ill-equipped to handle their finances as they grow older.
In contrast, secondary schools in England have included financial education as part of the national curriculum since 2014. This change came about after a successful campaign led by Martin Lewis, founder of MoneySavingExpert.com. However, the All Party Parliamentary Group (APPG) on Financial Education for Young People argues that this intervention comes too late for many children.
The APPG‘s Recommendations
The APPG, comprising 150 MPs and peers from various political parties, has published a report outlining several key recommendations:
- Universal Financial Education: Every primary school-aged child should receive “high-quality, effective and sustainable” education in finances by 2030.
- Curriculum Changes: Money management should be added to the primary national curriculum in England, bringing it in line with secondary education.
- Long-term Funding: The report suggests using funds from the expanded Dormant Assets Scheme to finance this educational initiative.
- National Strategies: Each UK nation should develop its own strategy for implementing such education.
- Teacher Support: More resources should be allocated to train and support teachers in delivering financial lessons effectively.
The Importance of Early Financial Teachings
Julian Knight MP, chair of the APPG, emphasised the urgency of this matter: “There is an urgent need for widespread and effective primary financial education to combat the challenges the younger generation are facing.”
The report warns that without early intervention, young people are at increased risk of financial abuse, fraud and debt. By providing children with a solid foundation in financial literacy, we can better prepare them for the economic challenges they may face in the future.
The Current Landscape Across the UK
While England lags behind in primary school financial teaching, other parts of the UK have made more progress:
- Northern Ireland, Scotland and Wales: These nations already include some financial lessons for under-11s in their national curriculums, primarily through maths and numeracy lessons.
- England: Financial education is part of the curriculum for students aged 11 and over, covering topics such as budgeting, managing risk, credit and debt, insurance, savings, and pensions.
The Role of External Organisations
It’s worth noting that various organisations have been working to fill the gap in financial teaching. For instance, Martin Lewis funded the first-ever financial education textbook for schools, and MoneySavingExpert.com launched the ‘Academoney’ financial education course in partnership with the Open University.
Government Response
The Department for Education has responded to the APPG’s recommendations, stating that the primary mathematics curriculum already includes specific content on calculations with money to develop young children’s financial literacy. However, critics argue that this approach is not comprehensive enough to provide children with the financial skills they need.
Next Steps
The APPG’s report sets an ambitious target, aiming for every primary school child to receive financial education by 2030. While APPGs don’t have the power to make laws directly, their recommendations can significantly influence policy debates and raise awareness of important issues.
As we move forward, it’s clear that financial education needs to be a priority. By equipping our children with essential money skills from an early age, we’re not just helping them manage their pocket money more effectively – we’re setting them up for a lifetime of better financial decisions.
Whether through curriculum changes, increased funding or innovative teaching methods, it’s time to ensure that every child has the opportunity to learn these crucial life skills. After all, in a world where financial decisions are becoming increasingly complex, a solid foundation in financial education isn’t just beneficial – it’s essential.
