Question to the Department for Education:

To ask the Secretary of State for Education, what steps his Department is taking to support the development of financial literacy skills for (a) primary school and (b) secondary school children.

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.

Finance 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 mathematical skills to make important financial decisions. In the primary mathematics curriculum, there is a strong emphasis on the essential arithmetic that pupils should be taught. This is vital, as a strong grasp of numeracy 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 in relation to more complex personal finance issues such as calculating loan repayments, interest rates and compound interest.

The Department works closely with the Money and Pensions Service and other stakeholders such as Her Majesty’s Treasury, to consider what can be discovered from other sector initiatives and whether there is scope to provide further support for the teaching of financial education in schools.