Personal finance education to be compulsory. #gossipersonline
Financial education will become compulsory in schools across England for the first time, following the publication of the new draft curriculum today.
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School pupils across England will be taught how to manage money for the first time.
The new curriculum will see financial education embedded in both mathematics and in "citizenship" education.
Campaigners have fought a long battle for children to be taught the basic skills of how to manage their money.
The Personal Finance Education Group (Pfeg) called it a "huge victory”.
Tracey Bleakley, Pfeg chief executive, said: "Financial education is essential in equipping young people with the knowledge, skills and confidence they need to be able to manage their money well.
“With financial mathematics included as a part of maths and financial capability included in citizenship education for the first time, the campaign has achieved both of its objectives. We are delighted that ministers have listened on both fronts."
Education Secretary Michael Gove today announced a public consultation on the draft National Curriculum, which will run until April 16.
A final version of the new curriculum will be handed to schools this September and rolled out to the classrooms in September 2014.
Personal finance is already taught in schools in Wales, Scotland and Northern Ireland.
The new programme for citizenship includes equipping all pupils "with the financial skills to enable them to manage their money on a day-to-day basis as well as to plan for future financial needs", according toconsultation documents.
It includes lessons in the importance of personal budgeting and money management, alongside lessons about taxes, credit, debt and financial products and services.
In addition, the new curriculum places a ‘renewed emphasis’ on mathematics, including financial mathematics.
Ms Bleakley said: “Financial education is an idea whose time has come. The campaign has been supported by teachers, parents, young people and more than 250 MPs and Peers of all parties. Today’s news is a big leap forward for our ultimate goal of ensuring that financial education is taught in every school in the UK.”
Justin Tomlinson MP, chair of the APPG on Financial Education for Young People, said he was "delighted".
"Generations of young people will now gain the knowledge and skills they need to be able to manage their personal finances," he said. "This will make a real and lasting difference to financial capability in our country.”
Martin Lewis, founder of MoneySavingExpert.com, has been among the campaigners. He said: "We desperately need to break the cycle of financial illiteracy in the UK – one of the causes of our current economic crisis and a huge contributor to continued mis-selling epidemics."
He called the new draft curriculum the "first step" in ensuring that "every child has at least some basic financial education to help them navigate our complex consumer economy".
A 2012 Panelbase survey conducted by pfeg and the National Children's Bureau found that 43pc of seven to sixteen-year-olds worried about money, while nearly one in eight, 12pc, had borrowed money that they could not afford to repay.
A separate YouGov/pfeg survey last year found that 96pc of 18-19 year olds with a credit card had never compared cards to check they were getting the best deal, while only 2pc knew what their card's APR was.
Financial and enterprise charity MyBnk welcomed the move but said the proposals would still leave "far too many young people behind".
Lily Lapenna, chief executive of MyBnk, said: “All of us who have fought for financial education to be assessable to all young people can celebrate today. The priority is now to support in providing quality and focus on reaching all young people including those not in formal education and post 16.”