The government announced there would be changes to the national curriculum to make it compulsory for primary school students to learn media literacy – such as how to spot fake news – and financial literacy.
They will also be taught about the law and rights, democracy and government, and climate education.
The Department for Education said children would be taught the fundamentals of money, acknowledging that they are often consumers before they reach secondary school.
Bridget Phillipson, Education Secretary, said: “It has been over a decade since the national curriculum was updated, and it’s more crucial than ever that young people are equipped to face the challenges of today, so they can seize the exciting opportunities that life has to offer.
“The path to our country’s renewal runs through our schools: they must be an epicentre of the strongest possible foundations of knowledge, and the skills to excel in the modern world.
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“From the fundamentals of reading to the present danger of spotting fake news, as part of our Plan for Change, these landmark reforms will help young people step boldly into the future, with the knowledge to achieve and the skills to thrive as the world around us continues to rapidly evolve.”
Empowering young people
Jinesh Vohra, CEO of Sprive, welcomed the news, saying it was “fantastic to see financial literacy being made a core part of the curriculum”.
He added: “Teaching children how mortgages work, how compound interest adds up, and how to budget could make a real difference to their future financial wellbeing.
“Around 65% of UK households are owner-occupied, and roughly half of those still have a mortgage, so understanding how borrowing works isn’t a niche skill, it’s essential knowledge for most of the population.
“By helping young people understand the long-term impact of interest rates, repayment terms and the benefits of overpaying, we can empower the next generation to make smarter financial decisions and avoid unnecessary debt later in life. Learning these lessons early means more people can look forward to financial freedom, not financial strain, as they get older.”
Mortgage brokers should educate children
Mark Harris, chief executive of SPF Private Clients, said financial literacy was a life skill that could be the difference between keeping on top of finances or “drowning in debt”.
Harris added: “Teaching children these valuable lessons in the classroom will ensure that nobody slips through the net. However, they need to be taught properly in order to have a real impact, so we would suggest going a step further – rather than teachers adding mortgages to their workload, we would encourage the government to invite mortgage brokers into the classroom.
“Being at the coalface with real-life experience, brokers can better explain how the mortgage market works, how to borrow sensibly and seek independent advice, the importance of having a strong credit file and not overstretching yourself. This will ensure the next generation are much more clued-up than their parents.”
