CHILDREN are set to learn about money, how to budget and how mortgages work in a new national curriculum, with financial experts saying it’s “as important as learning how to put on a condom”.
The Government has announced that primary pupils will learn about the fundamentals of money and AI.
Financial literacy will be taught in maths classes, or compulsory citizenship lessons in primary schools.
Pupils will also gain vital skills like how to spot fake news and identify misinformation and AI-generated disinformation, helping them develop the critical thinking needed to challenge what they see and protect them from online harms.
Education Secretary, Bridget Phillipson, said: “It has been over a decade since the national curriculum was updated, and it’s more crucial than ever that young people are equipped to face the challenges of today, so they can seize the exciting opportunities that life has to offer.
“The path to our country’s renewal runs through our schools: they must be an epicentre of the strongest possible foundations of knowledge, and the skills to excel in the modern world.
“From the fundamentals of reading to the present danger of spotting fake news, as part of our Plan for Change, these landmark reforms will help young people step boldly into the future, with the knowledge to achieve and the skills to thrive as the world around us continues to rapidly evolve.”
Financial experts welcomed the news.
Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, said: “Learning to budget is as important as learning how to put on a condom. Pythagoras theory isn’t going to help you when the bailiffs come knocking.
“The amount of clients that say to me ‘why didn’t we learn all this at school?’ Financial education really needs to make its way into curriculum. I do assemblies at local schools and the kids are keen to learn this stuff, so teach them.”
Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, said financial education is needed.
He continued: “This is hugely welcome news. Far too many children leave school completely ignorant as to how to budget and the dangers of credit cards and how something as crucial as finances work.
“When we approached schools recently to offer free sessions on this, the response was that they couldn’t spare class time for anything not in the curriculum or exams. Long term, higher financial literacy will be a big boost for the economy and help develop more entrepreneurs.”
Katy Eatenton, Mortgage & Protection Specialist at St Albans-based Lifetime Wealth Management, said it was a “positive step”.
She added: “Anything that gives young people a better understanding of how money works in the real world should be welcomed. Teaching the fundamentals of money could fundamentally change society for the better.
“Financial mistakes are often made because young people lack an understanding of the basics. This, for once, is a positive step forward from the Government.”
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said it will be beneficial to young people.
She continued: “This could be a game-changer for the young adults of tomorrow who will enter the world with a better grip of money and the basics of personal finance.
“Understanding mortgages, credit and how interest rates work could help avoid so many bad money decisions that can often have a long-term ripple effect.”
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, said the move will fill a hole in the curriculum.
He added: “As the former Chair of a multi-academy trust, it was evident that key life skills like financial literacy were missing from the curriculum. Before we send kids into the big wide world, we need to teach them about things that could majorly impact their lives and shape their financial decisions.
“The government should coordinate with financial professionals up and down the country who would happily help educate their local community, including parents.”
Michelle Lawson, Director at Fareham-based Lawson Financial, said it will benefit the financial industry.
She continued: “At last a bit of good news and common sense to come out of this government. Teaching kids about money and financial education not only gives them a good basic start point in life after school but may also whet their appetite to come into the financial services industry.
“There are many diverse career options that get overlooked as they are unrelatable, unlike doctors and nurses.”
Ranald Mitchell, Director at Norwich-based Charwin Mortgages, added: “This is a smart and long overdue step. Children are growing up in a world where misinformation spreads faster than playground gossip, so giving them the tools to spot fake news, online scams and think critically is essential.
“Teaching financial literacy is equally important, empowering generations to understand money and make better decisions online.
“No doubt there will be a spate of urgent training days as aging geography teachers are taught the new curriculum on the psychology of TikTok and why you should not talk down to your mortgage broker. Perhaps future governments, with a better understanding of money, will be able to balance budgets better.”
