Children to be educated about how to avoid debt
Under a new personal, social, health and economic (PSHE) curriculum, children as young as five will be taught how to look after their money to avoid getting into debt in later life.
The lessons are being ordered by schools secretary, Ed Balls, who said the lessons in personal finance will be compulsory for all pupils from September 2011.
Five-year-olds will be taught how to identify different banknotes and from 7 to 11, children could learn about managing bank and savings accounts and budgeting.
From 11 to 14, children could be educated about credit cards, mortgages and loans and managing household finances.
Finally, 14-16-year-olds could receive classes in how to budget effectively and avoid dangerous levels of debt.
Commenting on the plans, Mr 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,” he added.
Martin Lewis, founder of moneysavingexpert.com, who is launching the courses with Mr Balls, said: “Over the past 20 years we’ve dug a hell-hole of personal borrowing problems. This is a welcome first step.”