Developing financially capable young people: educators ‘could do better’
Our March 2008 report on personal finance education indicates that schools and colleges could - and should - do better if new government funding from September 2008 is to have real impact.
Concerns about growing personal debt and lack of financial awareness prompted the July 2007 announcement of 'economic well-being and financial capability' as a new non-statutory curriculum area for secondary school students. It comes into effect from September 2008, along with £11.5 million in additional funding to support personal finance education in the next three years.
In the run up to this initiative, our report examines the case for PFE being part of the curriculum for all 11–18-year-olds. Stopping short of suggesting compulsory inclusion in an already busy curriculum, we offer recommendations for schools, colleges, the Government and the Qualifications and Curriculum Authority (QCA).
If our recommendations are acted upon, students will have a far greater chance of effectively managing their money and avoiding debt in years to come. Miriam Rosen, Director Education
The report highlights that the best programmes work because they are strongly supported by senior managers who give personal finance education time in the curriculum. Their students were found to have a good understanding of the subject: they were able to use and understand financial language and apply their knowledge to decision making.
Many reasons for poor provision are explored in the report. High among them is simple pressure on curriculum time. But teachers’ lack of knowledge and expertise, for example, very few had received any form of professional development or training in personal finance education, was an important factor. There was a lack of awareness of available free resources and support provided by the Personal Finance Education Group or Adding up to a lifetime which is an interactive CD sent to all secondary schools. And the varied nature of provision post-16 adds a challenge to ensuring all students receive personal finance education.
Recommendations (in brief) for:
The Government
- provide clear guidance on how curriculum time can be found
- support the training of teachers in schools and colleges
- promote the sharing of good practice and resources like those outlined above.
The QCA
- build accreditation into appropriate subjects and learning programmes
- identify the learning outcomes expected at the ages of 14, 16 and 19
- provide guidance on how to assess financial capability.
Schools and colleges
- give sufficient priority to personal finance education in the curriculum
- ensure teachers are confident in their knowledge and classroom skills
- develop systems to check students’ progress.
Concluding that better teaching could leave students more prepared for the world of bank accounts, credit cards and mortgages, Miriam Rosen, Director Education said, ‘If our recommendations are acted upon, students will have a far greater chance of effectively managing their money and avoiding debt in years to come.’
The report draws evidence from visits to secondary schools, pupil referral units and sixth form colleges selected for their good practice, and findings from inspections and subject visits.
The report is in the publications and research section of our website:
www.ofsted.gov.uk/assets/Internet_Content/Shared_Content/Files/2008/mar/devperfin.pdf.
