WHAT CHILDREN ARE EXPECTED TO UNDERSTAND, BY AGE
The Personal Finance Education Group, which is part of charity Young Enterprise, has developed a framework to help teachers deliver money education.
Financial literacy has been on the national curriculum since September 2014, having been ushered in by former education secretary Michael Gove. Many believe it should be extended to primary schools. PFEG’S framework, below, outlines recommended attainments by stage.
By age five, children should be able to recognise different coins and begin to make simple choices about how to spend money. They should “be able to describe how money makes them feel”.
By seven, they should be able to start “keeping financial records” – for example, counting money in a box. They should be able to recognise the difference between a “need” and a “want”, be able to explain where money comes from and why they might want to save.
By nine, they should know of non-cash forms of spending. They should also begin to learn about borrowing.
When they leave primary school at 11, they should be able to perform very simple exchange rate calculations, and spot salesmen trying to influence their spending. The concept of “value for money” should be understood.
By 14, a child should understand budgeting and debt, as well as begin to be able to assess financial deals. They should also be able to spot a scam.
By the age of 16, they should be able to budget properly, have a feel for their rights as consumers, understand the idea of fraud and manage risk, as well as understand work and deductions from salary.