Empowering Students with Real-World Financial Skills

As families face increasing financial challenges, the role of schools in supporting financial literacy has never been more crucial

CREDIT: This is an edited version of an article that originally appeared on MAPS

The UK Strategy for Financial Wellbeing is a ten-year initiative designed to help everyone better manage their money and pensions. Launched in 2020, it has now reached a pivotal halfway point. A central goal of the strategy is to enhance financial literacy by delivering meaningful financial education to an additional two million children and young people across the UK.

Financial literacy is the ability to understand financial concepts, products and risks. Research has demonstrated that financial education can significantly improve the financial literacy of children from as young as seven, with a strong foundation in money management having lasting positive effects on their future. A financially literate individual is more likely to budget effectively, avoid harmful debt and plan for the future, all while making smart financial decisions.

Measuring the Plan

The strategy plans to regularly measure the percentage of children and young people who report that they recall financial education at school and found it useful, and/or that their parents gave them regular money, set rules about money and entrusted them with spending decisions. In the most recent survey, 48% (4.8 million) of children and young people responded positively to one or both statements. The national goal is to increase this figure to 6.8 million by 2030.

As part of the strategy’s goals for schools and further education colleges, there is a focus on ensuring that more teachers have the confidence, skills and knowledge to teach financial education effectively. The strategy also aims to support more schools and colleges in delivering engaging financial education to different year groups as part of a cohesive, ‘whole school’ approach.

What You Can Do Now

Financial education is most effective when schools collaborate with parents, carers and the wider community. This goes beyond simply raising awareness; it involves actively communicating with and engaging educators, parents and community services.

For a school business manager, this means playing a pivotal role in facilitating these partnerships and ensuring the financial education program is well-supported. You should work closely with school leadership to integrate financial education into the school’s overall strategy and ensure it aligns with any community outreach efforts.

Additionally, school business managers can partner with local community services and organisations to provide additional financial literacy resources or mentoring opportunities for students and their families. They can also work with local businesses or financial institutions to arrange workshops or webinars that enhance the financial education experience.

School business leaders can actively involve students in decision-making processes related to money by offering them opportunities to make informed choices based on financial information. This approach helps students understand the real-world implications of budgeting and financial planning while fostering a sense of responsibility. For example, SBLs could present students with options such as choosing between investing in a new vegetable growing box for the school garden or funding a one-off cooking lesson. Students would be given detailed financial information about the costs of each option, allowing them to vote on which project they believe would provide the most value.

When engaging students in this way, SBLs not only teach them about the financial aspects of decision-making but also encourage critical thinking and collaboration. This method empowers students to weigh up costs, benefits and long-term impact, helping them develop essential financial skills that they can apply in various aspects of their lives.

By helping students develop practical financial skills, we are preparing them for a future where they can make informed, responsible financial choices and build a strong foundation for their personal and financial wellbeing.