Watchdog goes big on personal finance in the classroom

It has been developed following FSA research, published today, which shows that while lessons in personal finance are being taught to some extent in the majority of schools, teachers want more resources to help them deliver financial capability in a crowded curriculum.

Colossal Cards tackles three key aspects of non-cash forms of money and comes with giant cards to match. They are:

• Saving - such as National Savings, credit unions and savings stamps
  

• Spending money you have, using cash cards, debit cards and cheques. And spending money you dont have on credit and store cards.
  

• Paying in advance with phone cards, season tickets for football or travel, savings stamps, gift vouchers and discount tokens.

Colossal Cards will also help teachers level the playing field so that all children, regardless of their background, can develop a basic understanding of financial transactions. FSA research* has shown that while middle class children understand how plastic money works they have little grasp of fundamental money skills, like budgeting and saving. On the other hand, children from poorer backgrounds, have limited experience of financial services and institutions but are more likely to have better budgeting skills and a keener sense of the cost of living.

Financial capability was introduced into the curriculum one year ago and the FSA is today publishing its first benchmarking report, Personal finance teaching in schools. It shows that:

• 84% of primary schools and 89% of secondary schools are already teaching personal finance to some extent, covering issues such as managing your money, the value of money, and understanding saving and budgeting. However the majority of pupils are receiving lessons only once or twice a term.

• The majority of secondary schools regard personal finance as important and 43% that are not yet teaching it plan to do so in the future.

• Half of primary schools and two-thirds of secondary schools feel they need more help in the shape of materials, training and advice, model lessons and examples of good practice.

Deborah Arnott, Head of Consumer Education Services said:

"Todays report shows that many teachers are already teaching some personal finance in the classroom. But clearly there is much more to be done to ensure that financial capability is effectively integrated into the curriculum.

Were acutely aware that teachers already have a huge amount to do and not enough time. And we certainly dont want to impose any extra burden on them.

Our resources focus on increasing understanding of personal finance issues and they dont promote specific financial products. They also provide information and guidance for teachers demonstrating how personal finance can be integrated across a wide range of subjects and topics on the curriculum, ready-made lesson plans and some fun props like Colossal Cards to bring personal finance alive in the classroom."

To help teachers turn policy into practice, the FSA has developed resources for all age groups and a dedicated section for schools and colleges at www.fsa.gov.uk/consumer/.

Fifty teachers stand to win a set of Colossal Cards for their school. Simply send a postcard with your name and details of the school where you teach, including its name, address and telephone number to Colossal Cards Competition, Financial Services Authority, FREEPOST LON 13176, London E14 5BR by Monday, 11 March 2002. The lucky draw will take place at the FSAs third annual education conference on Tuesday, 12 March 2002.

Colossal Cards can be obtained from the BEAM orderline on 020 7684 3330 at a cost of 16.45 including VAT plus 3.53 p&p.

Notes for editors

1. A press notice on Consumer Research Report 4, A cycle of disadvantage? Financial exclusion in childhood was issued on 20 November 2000 and can be found at www.fsa.gov.uk

2. A photograph of young people using Colossal Cards is available on request from the FSA press office on 020 7066 3232.

3. Consumer Research 11 Personal finance teaching in schools is available at www.fsa.gov.uk. It was conducted for the FSA by the National Centre for Social Research. A sample of 300 primary schools and 700 secondary schools in England was used.

4. Nearly all primary schools teach personal finance within mathematics. And for secondaries the most common platform is Personal, Social and Health Education (PSHE). It is also taught within maths lessons and business studies & economics.

5. Colossal Cards has received the pfeg (Personal Finance Education Group) quality mark. For more information on pfeg see the press notice issued on 26 November 2001 at www.fsa.gov.uk or visit www.pfeg.org

6. The FSAs third annual education conference will focus on financial capability for 16-19 year olds and will take place on Tuesday, 12 March 2002.

7. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.

8. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.