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

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).

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.

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.

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.

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.

‘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

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)

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

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

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

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

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

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

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

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

secondary-schools-in-wales-june-2011/?navmap=30,119,196www.estyn.gov.uk/english/docViewer/ /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, 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.

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).

Foundation Phase: Framework for Children’s Learning for 3 to 7-year-olds in Wales Mathematical Development Range: Measures and money Children should be given opportunities to: understand and use money – develop and awareness of the use of money and its value, initially through role play – recognise, sort and use coins; find totals and give change. Mathematics in the National Curriculum for Wales Key Stage 2 Programme of Study Range: Measures and money Pupils should be given opportunities to: 2. understand and use money  know and use the conventional way to record money  find approximate solutions to, and use the four operations to solve, problems involving money  understand a calculator display in relation to money, e.g. that a display of 21.4(pounds) means £21.40  be aware of currencies.

Mathematics in the National Curriculum for Wales Key Stage 3 Programme of Study Range: Measures and money Pupils should be given opportunities to: 2. understand and use money  understand and use the conventional way of recording money  calculate with money and solve problems relating to budgeting, saving and spending, and currency exchange rates  interpret a calculator display in relation to money. Mathematics in the National Curriculum for Wales Key Stage 4 Programme of Study Range: Measures and money Pupils should be given opportunities to: 2. understand and use money  understand and use the conventional way of recording money  calculate with money and solve problems relating to budgeting, saving and spending, profit and loss, discount, hire purchase, best buys, household bills, compound interest and currency exchange rates  interpret a calculator display in relation to money.

Personal and social education framework for 7 to 19-year-olds in Wales Key Stage 2 learning outcomes Range: Preparing for lifelong learning Learners should be given opportunities to understand:  that money is earned through work and can buy goods and services  the importance of looking after their money and the benefits of regular saving. Personal and social education framework for 7 to 19-year-olds in Wales Key Stage 3 learning outcomes Range: Preparing for lifelong learning Learners should be given opportunities to understand:  the economic and ethical consequences of personal financial decision-making as a consumer, e.g. Fairtrade  how to become competent at managing personal finances and recognise that saving provides financial independence. Personal and social education framework for 7 to 19-year-olds in Wales Key Stage 4 learning outcomes Range: Preparing for lifelong learning Learners should be given opportunities to understand:  their rights as consumers and their responsibilities in terms of managing a budget  the importance of planning for their financial futures and how to access financial advice.

Careers and the world of work: a framework for 11 to 19-year-olds in Wales Key Stage 3 learning outcomes Range: Understanding the world of work Learners should have the opportunity to:  explore the attributes of entrepreneurs and the role of enterprise in wealth creation. Careers and the world of work: a framework for 11 to 19-year-olds in Wales Key Stage 4 learning outcomes Range: Understanding the world of work Learners should have the opportunity to:  explore the role of enterprise/wealth creation and develop their own ability to act in entrepreneurial ways.

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.

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

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? Numeracy component of the LNF

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.

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’.Manage money planner Manage money Learners are able to: Receptionuse 1p, 2p, 5p and 10p coins to pay for items. Year 1use different combinations of money to pay for items up to 20p find totals and give change from 10p. Year 2use different combinations of money to pay for items up to £1 find totals and give change from multiples of 10p. learning.wales.gov.uk/resources/nlnf/?skip=1&lang=en

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’.

Manage money Learners are able to: Year 3use different combinations of money to pay for items up to £2 and calculate the change order and compare items up to £10 record money spent and saved. Year 4use money to pay for items up to £10 and calculate the change order and compare items up to £100 add and subtract totals less than £10 using correct notation, e.g. £6.85 – £2.76 manage money, compare costs from different retailers and determine what can be bought within a given budget. Year 5order and compare the cost of items up to £1 000 add and subtract totals less than £100 using correct notation, e.g. £ £33.45 plan and track money and savings by keeping accurate records realise that budgeting is important. Year 6use the terms profit and loss in buying and selling activities and make calculations for this understand the advantages and disadvantages of using bank accounts make comparisons between prices and understand which is best value for money.

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’.

Manage moneyLearners are able to: Year 7use profit and loss in buying and selling calculations understand the advantages and disadvantages of using bank accounts, including bank cards make informed decisions relating to discounts and special offers. Year 8carry out calculations relating to VAT, saving and borrowing appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing. Year 9calculate using foreign money and exchange rates understand the risks involved in different ways of saving and investing describe why insurance is important and understand the impact of not being insured. Extensionuse and understand efficient methods of calculating compound interest understand and demonstrate the real-life process of foreign exchange understand and calculate income tax.

Routes to learning in the LNF Manage money Learners are able to: A stepsgive a coin in exchange for an item after observing others do so in role play shop (may have no notion of coin’s value but will engage in the social interaction). B stepspoint to choice of item from two or three in role play shop then give coin(s) in exchange find coins from a limited collection which are the same as ones shown by the adult. C stepsgive money in exchange for an item in a real shop when coins and choice are prepared in advance sort coins according to one attribute, e.g. colour, size or shape. 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’.

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? Financial capability The guidance document Financial education for 7 to 19-year-olds in Wales can aid with the above questions.Financial education for 7 to 19-year-olds in Wales

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. Cross-curricular opportunities