Written by: Cally Worden
Since September 2014 lessons on how to manage your finances have been a compulsory part of the national curriculum in English schools. Money expertise, imparted to our children during maths and citizenship lessons, is designed to provide them with the skills they need to manage their money effectively and make good financial judgements.
Key Stage 3 – Ages 11-14
Younger children are provided with guidance on the function of money in the modern world, why budgeting is important, and how to manage their cash at a general level. They are also introduced to a basic range of financial products and services.
Key Stage 4 – Ages 14-16
As our kids grow up they need to be prepared for a financially independent life. So, for older kids the finance education package focuses on subjects such as wages and earnings, what taxes are and how they are levied, credit and debt. They are also introduced to the idea of more complex financial products and services.
The Maths Element
Surviving in the real world is made easier if you have not just an understanding of how money works, but also how to make financial predictions that can affect your future. For this reason our children our now also being taught the basics of financial maths, including simple interest calculations.
The ideas behind this government initiative are not new, they have perhaps gained momentum in the ongoing wake of the 2007 financial crisis. With many families still struggling to make ends meet, the need for a sound understanding of the principles of money management is more important than ever. What better time to start than at school?
Children learn from adults
Personally I’m all for this idea. Children can also learn much from observing the actions of their parents in respect of money management. They can gain a great deal from the idea of pocket money and savings projects from a young age.
The financial world is now far more sophisticated than ever it was. Sadly many adults have missed receiving sound advice and find themselves in financial trouble as a result. If we can instil the principles of financial responsibility and control from a young age, we are empowering our children and preparing them to face any money challenges they may face in later life, with confidence and knowledge.
How do you help your kids to learn about money?