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Financial Services: Education

Question for Department for Education

UIN 125432, tabled on 18 February 2022

To ask the Secretary of State for Education, what steps he is taking to improve the financial literacy of school children in Kingston upon Hull West and Hessle.

Answered on

25 February 2022

Education on financial matters helps to ensure that young people are prepared to manage their money well, make sound financial decisions, and know where to seek further information when needed.

Financial education forms part of the citizenship national curriculum which can be taught at all key stages and is compulsory at key stages 3 and 4: https://www.gov.uk/national-curriculum. Financial education ensures that pupils are taught the functions and uses of money, the importance of personal budgeting, money management and managing financial risk. At secondary school, pupils are taught about income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.

The department has introduced a rigorous mathematics curriculum, which provides young people with the knowledge and financial skills to make important financial decisions. In the primary mathematics curriculum, there is a strong emphasis on the essential arithmetic knowledge that pupils should be taught. This knowledge is vital, as a strong grasp of numeracy and numbers will underpin pupils’ ability to manage budgets and money, including, for example, using percentages. There is also some specific content about financial education, such as calculations with money.

The secondary mathematics curriculum develops pupils’ understanding and skills in relation to more complex personal finance issues such as calculating loan repayments, interest rates, and compound interest.

As with other aspects of the curriculum, schools have flexibility over how they deliver these subjects, so they can develop an integrated approach that is sensitive to the needs and background of their pupils.

The Money and Pensions Service published financial education guidance for primary and secondary schools in England on 11 November 2021, during Talk Money week. The guidance is designed to support school leaders to enhance the financial education currently delivered in their schools to make it memorable and impactful, and is available to view here: https://maps.org.uk/2021/11/11/financial-education-guidance-for-primary-and-secondary-schools-in-england/.

The department will continue to work closely with the Money and Pensions Service and other stakeholders such as Her Majesty's Treasury, to consider learning from other sector initiatives and whether there is scope to provide further support for the teaching of financial education in schools.