As mentioned in last week's article, children are supposed to start learning about the subject of Personal Finance from September. Unfortunately, the Government seems to have fallen a trifle behind with its plans and you'll have as much luck sniffing out the specifics as you would finding a rising share on the TechMark. Only 5 out of 10 for punctuality and 4 out of 10 for detail then!
Personal Finance is part of the new national guidelines for Personal, Social and Health Education in schools which are scheduled to come into effect at the start of the new school year. However, they are only guidelines. The subject is not part of the statutory element of the National Curriculum, though it's unlikely schools will ignore the PSHE framework that has so far been issued to them.
As many parents will know, the Government is planning to introduce the catch-all subject of "Citizenship" to the statutory curriculum in 2002 which is designed to give pupils a variety of life skills. Schools will have to show that they are preparing their pupils for adult life and, if they don't cover some of the elements of personal finance, they'll have a hard job convincing school inspectors that they really are covering the required areas.
However, it seems a shame considering that money governs our lives to such an extent that personal finance isn't on the primary curriculum. But a spokesman for the Qualification and Curriculum Authority, which oversees issues of education and training throughout the school system, says the very fact that it has been included in the new guidelines underlines its importance. And, he says, the provision of a non-statutory framework is deliberate. "There is no legally prescriptive curriculum because we believe teachers should exercise their professional judgement in how they meet the needs of their pupils in this area."
The idea is that pupils aged from 5 to 16 years old will be taught about personal finance throughout each of the four key stages of PSHE but so far the only information that has been issued to teachers is the following:
5-7 year olds to be taught that money comes from different sources and can be used for different purposes;
7-11 year olds to be taught to look after their money and realise that future wants and needs may be met through saving;
11-14 year olds to be taught what influences how we spend or save money, and how to become competent at managing personal money;
14-16 year olds to be taught to use a range of financial tools and services, including budgeting and saving, in managing personal money.
In fact the Financial Services Authority, which was given the task of putting some meat on the bones, has already drawn up the more specific details of what should be taught in lessons. Although these haven't yet been published they are expected to include the differences between credit and debt, an broad outline of how the stock market works, an understanding of short, medium and long-term investment, and the meaning of risk and return on investments. The importance of taking responsibility for one's finances and the impact that financial decisions can have on the family are also to be accentuated.
The FSA, an independent body set up by the Government to regulate financial services and to protect consumers, wants Personal Finance to appear in the statutory part of the curriculum, as does The Motley Fool. Their proposals appear to have been well-received by the Department of Education, though if they're not being taught in the classroom from September, it won't be the FSA's fault. The report from their Working Party was handed over to the Department of Education back in March.
The reason for the potential delay, believe it or not, is down to the infamous Clause 28 which governs the promotion of homosexuality in schools and which the Government wants to abolish. As it forms part of the Sex and Relationships aspect of the PSHE guidelines, until it's sorted out, it's unlikely that any of the other features of the secondary curriculum can be sent out to schools.
The most teachers can expect is the possibility of publication on the DFE's website at some point over the summer. The print version won't be sent out to schools until after the beginning of the new school year.
Still -- in terms of educating the young in the ways of Foolish thinking -- it's a start!
If you have any views on what suggestions we should make to the Government for inclusion in the Personal Finance section of the National Curriculum, visit our Women's Finance Discussion Board.
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