Business Coalition Demands Compulsory Financial Literacy in English Schools

An umbrella coalition of businesses has called on UK Prime Minister to make financial literacy mandatory for all schools in the UK, heaping pressure on the UK government to ensure that its children undergo early schooling on financial skills.

Financial education was incorporated into the curriculum of local authority-run secondary schools back in 2014, but is commonly taught as a non-core subject, for instance, citizenship. For academies and free schools, it is an optional subject. In an open letter, the Financial Education Council (FEC), a subcommittee of The Investing and Saving Alliance (TISA) pointed out that financial education has been implemented haphazardly and, therefore not resulting in much impact on the students.

This end date sits well with the Labour government request to consult on a comprehensive review of the school curriculum, led by Becky Francis, the chief executive of the charity Education Endowment Foundation. Several other organizations have come out in support of the letter, including L&G, Schroders, GoHenry, NatWest, Cushon, Rathbones, Foresters, and Bank of Ireland.

These companies support the proposals made by the House of Commons Education Select Committee this spring, which pointed to a review of the mathematics curriculum to make it better and more related to financial education provision. The cross-party group of MPs has urged the government to make not only the personal but also the social aspects of financial education compulsory at the levels of primary and secondary schools.

Low levels of basic numeracy confidence among young people have raised some concerns, and this situation is worsened by the current cost of living crisis. A number of charities, including the Financial Times’ Financial Literacy and Inclusion Campaign, have argued that better financial education should be introduced.

Carol Knight, Chief Executive, TISA took pains to emphasize getting financial education at an early childhood. This would lead to more access and confidence in the future of finance for the person and society as a whole, and hasten economic growth.

In response, a spokesperson for the Department for Education said: “Financial education is already a compulsory part of the national curriculum and covers key topics such as personal budgeting and financial products. The Curriculum and Assessment Review is currently underway. The department welcomes input from experts and organizations, such as the FEC, to influence future recommendations.”.