Module objectives

1. Module 1: An introduction to financial education and where ‘Manage money’ exists in the national curriculum in Wales

2. Module objectives • Information on the rationale and purpose of financial education. • An indication of where financial capability sits within the school curriculum in Wales, and the importance of coordinating delivery between different subject areas within the school. • Opportunities to look at the development of skills as outlined in the ‘Manage money’ element of the numeracy component of the National Literacy and Numeracy Framework (LNF).

3. Rationale and purpose of financial education • Schools and colleges have a unique opportunity to instil positive attitudes towards finance at an early age and to reach all sections of society, including many individuals who may later become far harder to reach. • Financial education aims to equip learners with the skills, knowledge and confidence to manage their money well. It also explores attitudes, emotions and behaviours towards money. • Financial education encourages learners to make informed choices on topics such as needs and wants, budgeting, borrowing, saving and best value for money.

4. Financial capability • Financial capability can be divided into three interrelated themes: • financial knowledge and understanding: having knowledge and understanding of the nature of money and insight into its functions and uses • financial skills and competence: being able to apply knowledge and understanding of financial matters across a range of contexts in order to deal with day-to-day money management issues and to begin to think about planning for the future • financial responsibility: developing a good sense of judgement as to how money can be used effectively or wasted.

5. Points to consider when planning to deliver financial education in schools • At the start of the planning process, school staff should consider the nature of the school community and the needs and backgrounds of its learners. • Differences in background and experience will affect learners’ experience of money and finance. • Some learners’ experience of money is still very much within a cash economy. • Cultural diversity can give learners varying/different experiences about money.

6. Delivering financial education across the curriculum can: • provide relevant, challenging and engaging learning opportunities for all learners to link learning to life outside school • develop learners’ problem-solving skills in a real-life context • encourage learners to make connections between different subjects in the curriculum • encourage transference of skills and develop literacy and numeracy skills.

7. ‘The equation is simple: no finance education equals poor financial decisions, equals personal debt plus worry, plus ill health which equals a national, socio-economic problem.’ (pfeg*, November 2009) *pfeg (Personal Finance Education Group) is a UK financial education charity. More details can be found at www.pfeg.org

8. Children and money . . . some research findings Eight years old is the average age for UK children to get their first mobile phone. Research carried out by pfeg: ‘Money on our Minds – a student consultation project’ (2009)www.pfeg.org/projects-funding/projects/money-our-minds-student-consultation-project

9. Children and money . . . some research findings Ten years old is the average age at which children begin to purchase items online. Research carried out by pfeg: ‘Money on our Minds – a student consultation project’ (2009)www.pfeg.org/projects-funding/projects/money-our-minds-student-consultation-project

10. Children and money . . . some research findings 1 in 5 children have used their parents’ or older siblings’ card to purchase items online. Research carried out by pfeg: ‘Money on our Minds – a student consultation project’ (2009)www.pfeg.org/projects-funding/projects/money-our-minds-student-consultation-project

11. Children and money . . . some research findings Over 75% of 7 to 11-year-olds are already saving for the future. Research carried out by pfeg: ‘Money on our Minds – a student consultation project’ (2009)www.pfeg.org/projects-funding/projects/money-our-minds-student-consultation-project

12. Children and money . . . some research findings 54% of 17-year-olds say they are in debt to family and friends. Research carried out by pfeg: ‘Money on our Minds – a student consultation project’ (2009)www.pfeg.org/projects-funding/projects/money-our-minds-student-consultation-project

13. Children and money . . . some research findings 90% of teenagers say they worry about money on a daily basis. Research carried out by pfeg: ‘Money on our Minds – a student consultation project’ (2009)www.pfeg.org/projects-funding/projects/money-our-minds-student-consultation-project

14. Children and money . . . some research findings 51% of teenagers say they would like to learn how to control their spending. Research carried out by pfeg: ‘Money on our Minds – a student consultation project’ (2009)www.pfeg.org/projects-funding/projects/money-our-minds-student-consultation-project

15. Children and money . . . some research findings 26% of teenagers think that credit cards or overdrafts are for ‘overspending’. Research carried out by pfeg: ‘Money on our Minds – a student consultation project’ (2009)www.pfeg.org/projects-funding/projects/money-our-minds-student-consultation-project

16. Children and money . . . some research findings 93% of teachers and parents/carers think that personal finance education should be taught in schools. Research carried out by pfeg: ‘Money on our Minds – a student consultation project’ (2009)www.pfeg.org/projects-funding/projects/money-our-minds-student-consultation-project

17. Money Matters: the provision of financial education for 7 to 19-year-olds in primary and secondary schools in Wales • Estyn’s 2011 Money Matters report presents seven best practice case studies of approaches taken by schools to develop financial education. It draws on evidence gathered from visits to 20 schools and reports on findings in relation to financial education based on the following: • learners’ financial skills, knowledge and understanding • planning and delivering financial education • partnership working • staff development and resources • leadership. www.estyn.gov.uk/english/docViewer/200955.3/money-matters-the-provision-of-financial-education-for-7-to-19-year-olds-in-primary-and-secondary-schools-in-wales-june-2011/?navmap=30,119,196,

18. Curriculum opportunities to deliver financial education • Specific elements of financial education have been included in the following Welsh Government resources: • Foundation Phase: Framework for Children’s Learning for 3 to 7-year-olds in Wales (2008) • National Literacy and Numeracy Framework (LNF) (2013) • Mathematics in the National Curriculum for Wales (2008) • Personal and social education framework for 7 to 19-year-olds in Wales (2008) • Careers and the world of work: a framework for 11 to 19-year-olds in Wales (2008).

23. The National Literacy and Numeracy Framework (LNF) • The National Literacy and Numeracy Framework (LNF) focuses on four strands of numeracy: • Strand 1: Developing numerical reasoning • Strand 2: Using number skills • Strand 3: Using measuring skills • Strand 4: Using data skills.

24. Numeracy component of the LNF • Strand: Using number skills • Elements: • Use number facts and relationships • Fractions, decimals, percentages and ratio • Calculate using mental and written methods • Estimate and check • Manage money

25. Numeracy component of the LNF Take a closer look at the skills outlined in the ‘Manage money’ element of the numeracy component of the LNF. Where in your school curriculum or in your teaching are there opportunities for learners to deliver these skills?

26. LNF learner outcomes The following tables show the learner outcomes as specified in the numeracy component of the LNF. The focus here is on the ‘Manage money’ element.

27. LNF Foundation Phase learner outcomes Manage money On-going task: think about the opportunities in your teaching to develop the following skills and add them to the ‘Manage money planner’. learning.wales.gov.uk/resources/nlnf/?skip=1&lang=en

28. LNF Key Stage 2 learner outcomes Manage money On-going task: think about the opportunities in your teaching to develop the following skills and add them to the ‘Manage money planner’.

30. LNF Key Stage 3 learner outcomes Manage money On-going task: think about the opportunities in your teaching to develop the following skills and add them to the ‘Manage money planner’.

32. Routes to learning in the LNF If applicable for your learners, are there opportunities in your teaching for the above skills to be developed? Add your ideas to the ‘Manage money planner’.

33. Financial capability What might a financially capable learner in a primary school look like? What might a financially capable learner in an 11–19 setting look like? The guidance document Financial education for 7 to 19-year-olds in Wales can aid with the above questions.

34. Cross-curricular opportunities The guidance document Financial Education for 7 to 19-year-olds in Wales, identifies some opportunities to develop financial education across the curriculum(pages 27–28). Schools can use the guidance in conjunction with the numeracy component of the LNF to support the development of learners’ financial skills as outlined in the ‘Manage money’ element. The other modules in this learning pack take a close look at specific topics and provide ideas for use in the classroom.