Economic Wellbeing and Financial Capability in the Curriculum

Rotherham Primary Pshee Network

Wednesday 3 March 2010

Kevin Oliver

Email - Kevin.oliver@pfeg.org

07912717506

Aims of today’s session …

• To provide an overview of Personal Finance Education within the new primary curriculum

• To look at new resources available through pfeg and the My Money project

• To begin to plan for My Money Week 2010

pfeg’s mission

to ensure that all school leavers are equipped with the knowledge, confidence and skills in financial matters to allow them to participate fully in society

In a recent survey …

of people find money the hardest thing to talk about with their partners?

of all people, think an ISA is an i-pod accessory?

of the 16-24 age group do not keep track of their finances?

of partners lie about how much they spend on credit cards?

of British teenagers worry about their money and spending habits?

What percentage …

74158032

90

Source – www.creditaction.org.uk

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All children and young people have access to a planned and coherent programme of personal finance education so that they leave school with the skills and confidence to manage their money well.

HM Treasury consultation paper on financial capability (January 2007)

The Government’s long-term aspiration:

Five desired outcomes:

o being healthy

o staying safe

o enjoying and achieving

o making a positive contribution

o economic well-being

Every Child Matters

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• On average, every household owes just under £8k

- Excluding mortgages!

• Twice as much as the rest of Europe

• Insolvencies are at the highest level since records began in 1960

• 3.9 million children live in poverty (1 in 3 in some areas of Rotherham

• 5.5 million children live in households that are struggling

• The average cost of raising a child to age 21 is £201,809!

• Source – LV annual survey published 23/02/10

• London dearest at £220,769

• Yorkshire & the Humber cheapest at £177,706

The National Social Context:

Adults• 50% of the 18 – 34-year olds have up to £10,000 debts

(excluding mortgages)

• The national average projected debt on graduation is £14,161.

• Nearly a third of adults would face financial disaster within two months if they lost their jobs

• 2,915 people reported they had become redundant every day during 3 months to end January 2009.

• Citizen Advice Bureaus deal with 7,241 new debt problems every day

Source: www.creditaction.org.uk

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• £5.80 per hour

at age 22

• At age 18

£4.83 per hour

• At age 16

£3.57 per hour

• At age 14

No minimum

National Minimum Wage (from 1 October 09)

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The curriculum should enable all young people to become:

• Successful learners who enjoy learning, make progress and achieve

• Confident individuals who are able to live safe, healthy and fulfilling lives

• Responsible citizens who make a positive contribution to society

New curriculum

The QCA Secondary Curriculum ReviewThe QCA Secondary Curriculum Review

New guidelines for the teaching of Financial Capability(09/08)

o Personal, Social, Health and Economic Education

o Citizenship

o Mathematics (and in functional Maths from 2010)

Key underpinning skills

Enterprise education Work related learning

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‘Financial Capability is the ability to manage one’s finances and to become a confident, questioning and informed consumer of financial services’

- Guidance on financial capability in the secondary curriculum: key stage 3 and 4 (2008)

What is financial capability?

Curriculum Guidance

Financial knowledge

and understandin

g

Financial skills

Appropriate

Attitudes

A planned and coherent programme of learning opportunities

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Final Report & Consultation complete New curriculum published January 2010 First teaching September 2011 6 Areas of Study – 6 Statutory Programmes of Study References to Managing Money are outlined in:

- Mathematical understanding- Physical development, health and wellbeing

The Rose Review & The New Primary Curriculum

Personal - budgeting, bank accounts, saving, credit and debt, shopping, choosing products,

Civic - basic knowledge of taxation, why we pay them, how much, what it’s spent on, ethical issues, also what is the best way to give money to charities.

Business - employment and self employment,jobs and salaries, making money, offering services and products, raising money

What is financial capability?

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FINANCIAL KNOWLEDGE AND UNDERSTANDING

- helping young people to understand the concept of money

FINANCIAL SKILLS AND COMPETENCE

- day-to-day money management and planning for the future

FINANCIAL RESPONSIBILITY

- the wider impact of money and personal financial decisions, not only for an individual’s future, but also at a greater, societal level

Financial knowledge

and understanding

Financial skills and

competence

Financial responsibility

The Three Strands

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• Financial UnderstandingUnderstanding what money is and how it is exchanged Where our money comes fromWhere does it go? Spending on needs and wants

• Financial CompetenceDay-to-day money management – looking after our moneyHow can we plan ahead for future spending?How to deal with money risks - and returns?

• Financial responsibilityMaking personal life choices and thinking about best valueHow our choices impact on others here and elsewhere

Aspects of financial capability:

Children may be experiencing money very differently than we did at their age

Economic Changes

Planning - Link topics within PSHE education

• Drugs• Careers• Sex education• Healthy eating• Decision making• Enterprise• Ethical and moral issues

Personal finance creates a link between Personal Wellbeing and Economic Wellbeing. Its also useful for looking at risk

Financial Capability

As well as an important key process, financial capability has links to many areas of the PSHE education curriculum.

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The Spinning Lady

Clockwise = Right brain

– Subjective, random, intuitive, synthesising, holistic

Anti-clockwise = Left brain

_ Logical, rational, objective, sequential, analytical

Schools tend to favour left brain modes of thinking!

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LEFT BRAIN FUNCTIONSuses logicdetail orientedfacts rulewords and languagepresent and pastmaths and sciencecan comprehendorder/pattern perceptionknows object namereality basedforms strategiespracticalsafe

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RIGHT BRAIN FUNCTIONSuses feeling"big picture" orientedimagination rulessymbols and imagespresent and futurephilosophy & religioncan "get it" (i.e. meaning)believesappreciatesspatial perceptionknows object functionfantasy basedpresents possibilitiesimpetuous

Four key projects

Available free support

Funded by Funded by

Funded byFunded by DCSFICAEWATTPFSRathbonesCoventry Building Society

My Money• A 3 Year initiative funded by the DCSF working

with all Key Stages• Building capacity for those working in LA’s and in

schools• Providing materials, training and support for

schools• Building an ongoing activity week on an annual

basis• My Money Week 28 June to 2 July 2010• Developing Centres of Excellence

My Money Resources• Guide to Child Trust Fund• My Money Week Toolkits (Out by end March 10)• Primary Toolkit • Parents guide tbc• On line games• Other resources to follow• All Resources are FREE• All can be downloaded

www.mymoneyonline.org

And don’t forget …….

28th June to

4th July

2010

My MoneyWeek

AssembliesCross Curricular

Classroom learning

Whole school activities

Guest speakers

Local volunteers/outside agencies eg CAB, Credit Union

Celebrity Challenges

Involve parents

My Money Week: Many Dimensions

Y6 – 7 transition

See mymoneyonline.org for 2009 case studies

www.pfeg.org