Make financial education compulsory in English schools, business urges #NewsUnitedStates

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A cross-industry coalition of businesses has urged the UK prime minister to make financial education compulsory in all English schools, adding pressure on the government to ensure children are taught how money works from an early age.

Financial education was added to the curriculum for local authority-run secondary schools in 2014, but it is largely incorporated in non-core subjects, such as citizenship. The subject is optional for academies and free schools.

In an open letter, the Financial Education Council (FEC), a subcommittee of The Investing and Saving Alliance (TISA), said implementation of the subject “remains inconsistent and its impact limited.”

The call to boost personal financial education comes as the Labour government consults on a proposed overhaul of the school curriculum. A review is being led by Becky Francis, chief executive of the Education Endowment Foundation charity.

The letter has been signed by groups including L&G, Schroders, GoHenry, NatWest Cushon, Rathbones, Foresters and Bank of Ireland.

The businesses said they backed recommendations made earlier this year by the House of Commons education select committee, who asked ministers to review the contents of the current maths curriculum to expand “the provision and relevance” of financial education. 

The crossparty group of MPs called on the government to make the “personal and societal elements” of financial education compulsory at both primary and secondary school level.

Campaigners have warned that confidence in basic numeracy is at a low level among young people, which only compounds pressure on them during a cost of living crisis.

Several charities, including the Financial Times’ Financial Literacy and Inclusion Campaign, have pressed the government for better financial education.

Carol Knight, TISA CEO said: “There is clear evidence that the delivery of effective financial education during childhood is of great benefit both from an individual and a societal perspective: helping to increase financial inclusion, financial confidence and, ultimately, increase economic growth.

“For these reasons, TISA is calling on the prime minister to add financial education to the curriculum so that all children can benefit from a high-quality and effective financial education.” 

A Department for Education spokesperson said financial education already forms a compulsory part of the national curriculum covering personal budgeting, calculating interest, financial products and services, and how public money is raised and spent.

“The Curriculum and Assessment Review led by Becky Francis recently launched a call for evidence and we encourage experts, teachers, parents and key organisations like the Financial Education Council to respond to help shape their recommendations to government,” the spokesperson added.