School children to learn
about money

Children as young as seven will be more money-savvy than ever before under new government plans to teach youngsters about bank accounts and budgeting.

All pupils in England aged five to 16 will be given financial literacy lessons as part of  a new personal, social, health and economic (PSHE) curriculum which becomes compulsory next year.

Children aged between five and seven will learn how to differentiate coins and notes from each other and how to save money.

For older children aged seven to 11, lessons will be provided on how to manage a bank account and how to budget.

Practical information on everyday adult finances such as credit cards, mortgages and loans will be provided in lessons for secondary school pupils aged 11 to 14, with 14-16 year-old pupils learning about debt and the problems it can create for people.

Schools secretary Ed Balls said: "It's vital that all young people leave school with a basic understanding of how to manage their money sensibly. So it's really important that we teach our children about money matters like pensions, responsible saving and effective money management."

Proposals outlining which topics schools could cover will be consulted on later this year.

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