Let’s embed financial literacy into the curriculum

The government’s recent decision to reject the education committee’s recommendation for more financial education qualifications, in favour of functional skills, feels like a missed opportunity. Ultimately, young people keen to shape their futures stand to lose most.

Functional skills and GCSE maths are important, but don’t fully prepare young people for the complex financial decisions they will face. A recent report from Santander found that just 13 per cent of young people aged 18 to 21 found that the financial information they learned at school was applicable to their own finances.

From my perspective as a principal with a 17-year background in banking and finance, I believe we must equip young people with financial literacy as a core life skill.

We need a more systemic approach because the current system falls short. While functional skills and GCSE maths may teach compound interest or ratio and proportion, they rarely address the real-world decisions involved in weighing-up different loan options or choosing appropriate financial products.

At South Devon College, we fill some of these gaps within our personal development curriculum, working with the Money and Pensions Service to run workshops on saving, pensions, and avoiding dangerous lenders.

Financial literacy should not be an optional extra

This is progress, but FE colleges could do far more with properly funded support.

Financial literacy should be embedded into curriculum, not treated as an optional extra. That way, every young person receives consistent, high-quality education in an area that will affect their adult life.

After all, at some point, everyone will borrow money – whether it’s for a mortgage, car loan or credit card, and they need to understand pensions, insurance, and savings. If these topics aren’t covered in school or college, how can we expect young people to make informed choices or understand how to manage debt?

They need practical financial education, not just theory. It’s like teaching someone all about a car engine and then expecting them to be able to drive.

Without applied understanding, many learn through trial and error and, in the absence of reliable information, increasingly turn to questionable online sources for advice.

Research last year by Intuit Credit Karma suggests that so-called “finfluencers” on TikTok are now the main source of financial information for nearly 36 per cent of Gen Z.

The risks extend beyond poor budgeting: loan sharks, online fraudsters, and other ‘dodgy’ practices exploit financial ignorance, trapping young people in cycles of debt.

In an almost cashless society, digital literacy merges with financial literacy, both are needed to protect money and personal data.

Too many young people are starting their careers unprepared for important financial choices.

I understand the argument that adding financial literacy would overburden teachers. However, I don’t believe we need a standalone qualification. Instead, it can be integrated into maths, citizenship, or personal development, ideally all.

For that to happen effectively, targeted investment is essential. Lecturers need proper training and resources so they can confidently embed financial concepts into the classroom.

FE colleges can deliver the specialised, practical training required for real-life situations, but resources are already stretched. Without long-term funding, it’s hard to maintain such comprehensive programmes.

A national campaign

Many external stakeholders have a vested interest in boosting financial literacy. A well-funded campaign would help learners spot fraud, plan for retirement, and deal with everyday money matters.

Banks, financial advisers, and well-known experts like, Martin Lewis (MoneySavingExpert) could nationally collaborate with schools and colleges, providing practical tools for learners.

This campaign could cover core topics like budgeting, credit scores, debt, and the pitfalls of easy credit.

But it must consider vulnerable students too: young people without access to a basic banking service face higher risk of exploitation, so they need guidance on credit scores, consumer rights, and safe financial products.

With strong financial and digital awareness, young people can protect themselves from fraud, debt, and predatory practices. By embedding practical financial education into the curriculum, we can ensure they are ready to make informed choices.

Financial literacy is as crucial as literacy, numeracy, and digital skills, and all four overlap significantly. Together, they equip individuals for modern life.