Children to learn about mortgages and budgeting at school as financial education is made compulsory – This is Money

Report on National Curriculum Reform and its Alignment with Sustainable Development Goals

The Government of England has announced a significant reform of the national curriculum, mandating financial literacy as a compulsory subject for all primary and secondary schools by the year 2028. This initiative is a direct response to a national curriculum and assessment review and aligns with several key United Nations Sustainable Development Goals (SDGs), particularly those concerning education, poverty, and economic growth.

Core Objectives of the Curriculum Modernisation

Advancing Quality Education (SDG 4) and Economic Well-being (SDG 1, SDG 8)

The primary objective of the reform is to equip all learners with the knowledge and skills necessary for sustainable development, directly addressing SDG 4 (Quality Education). By embedding practical financial skills into the curriculum, the initiative aims to foster economic resilience and contribute to long-term poverty reduction (SDG 1) and sustainable economic growth (SDG 8).

• Budgeting and Money Management: Foundational skills for personal financial stability.
• Compound Interest: Understanding principles of saving and investment.
• Mortgages: Knowledge for significant life-stage financial decisions.

This universal provision of financial education is also a critical step towards Reducing Inequalities (SDG 10), as it ensures all children, regardless of their school or background, have access to essential financial knowledge previously taught inconsistently.

Integrated Education for Sustainable Development

The financial literacy content will be integrated within new compulsory ‘citizenship’ classes, which holistically address multiple facets of sustainable development as outlined in SDG Target 4.7.

1. Climate Change Education: Directly supports SDG 13 (Climate Action) by raising awareness and understanding of environmental challenges from a young age.
2. Media Literacy: Teaching pupils to recognise disinformation contributes to SDG 16 (Peace, Justice and Strong Institutions) by fostering an informed and critically-thinking citizenry.

Rationale and Supporting Evidence for Reform

Addressing Educational Deficiencies and Public Demand

The curriculum review highlighted significant shortcomings in the existing educational framework. Evidence indicated that current financial education is not consistently delivered, with only one-third of children recalling the teaching as useful. This educational gap is compounded by strong public demand for reform.

• A review focus group identified financial literacy as the most important area for parents and young people.
• Research indicates 84% of school-age children desire more financial education.
• Surveys show 76% of the general population believe schools should teach more about money.

Socio-Economic Impact and SDG Linkages

Experts have noted the profound connection between financial capability and broader societal well-being. Poor financial literacy is linked to a range of negative outcomes, and improving it can yield substantial benefits for both individuals and the national economy.

• Health and Well-being (SDG 3): Enhanced financial capability can mitigate financial stress, a known contributor to mental health problems.
• Decent Work and Economic Growth (SDG 8): Improved financial literacy can lead to better employment access and contribute to national economic growth, as supported by research from the Centre for Economics and Business Research.

Implementation Strategy and Recommendations

Ensuring Effective Delivery for Meaningful Impact

While the policy change is a significant step forward, experts caution that its success is contingent on effective implementation. The reform’s potential to contribute meaningfully to the SDGs depends on overcoming existing resource constraints within the education sector.

Key Requirements for Successful Implementation

1. Dedicated Funding: The government must provide specific funding to support the new curriculum requirements.
2. Teacher Training: Educators must receive adequate training to deliver the new content effectively.
3. Expert Resources: Schools need access to high-quality, practical, and relevant teaching materials.
4. Curriculum Integration: The subject must be a compulsory and assessed part of the school timetable to ensure it is prioritised.

Fulfilling these requirements is critical to transforming the policy into a practical tool that empowers young people and advances the nation’s progress towards a more sustainable and equitable future.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on making financial literacy a compulsory subject in England connects to several Sustainable Development Goals (SDGs) by focusing on education, economic well-being, and sustainable development.

• SDG 4: Quality Education

  This is the most direct SDG addressed. The article’s entire focus is on the government’s announcement to make “financial literacy… a compulsory subject for all primary and secondary schools in England”. This initiative aims to modernise the national curriculum and ensure all children receive a quality education that equips them with essential life skills.

• SDG 1: No Poverty

  The article implies a connection to SDG 1 by highlighting how financial education can prevent future economic hardship. Kristina Church from Aberdeen is quoted saying, “poor financial capability can lead to a risk of multiple issues, from… struggling to access good employment.” By teaching skills like budgeting and money management, the initiative aims to give children the tools to avoid debt and poverty in adulthood.

• SDG 8: Decent Work and Economic Growth

  The article explicitly links financial literacy to broader economic benefits. It states, “Greater financial literacy… can bring benefits to both individuals and to the economy.” It also references research showing that improvements in financial literacy “could in turn boost the country’s economy,” which directly aligns with the goal of promoting sustained and inclusive economic growth.

• SDG 10: Reduced Inequalities

  By making financial education compulsory for all students, the policy aims to reduce inequalities in financial knowledge. Currently, “financial education is only compulsory in local authority-run schools, this means that many schools don’t have to teach” it. The new universal requirement ensures that all children, regardless of the type of school they attend or their socioeconomic background, will receive the same foundational money skills, helping to level the playing field for future financial capability.

2. What specific targets under those SDGs can be identified based on the article’s content?

The article’s content points to several specific targets within the identified SDGs.

• Target 4.4: Relevant skills for employment

  Under SDG 4, Target 4.4 aims to “substantially increase the number of youth and adults who have relevant skills… for employment, decent jobs and entrepreneurship.” The article directly supports this by mandating the teaching of practical skills like “budgeting, compound interest, money management and mortgages.” These are crucial skills for personal financial stability, which is foundational for securing and maintaining employment.

• Target 4.7: Education for sustainable development

  Target 4.7 is to “ensure that all learners acquire the knowledge and skills needed to promote sustainable development.” The article connects to this by stating that primary school pupils will be taught “about climate change” alongside financial and media literacy. This demonstrates a curriculum designed to foster responsible citizenship and an understanding of global challenges.

• Target 8.10: Access to financial services

  Under SDG 8, Target 8.10 aims to “strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.” While the article focuses on education, the outcome of this education is to create a populace capable of engaging with these services. By giving young people the “tools to understand money from an early age,” the policy helps build the financial confidence needed to effectively use banking and other financial services, thereby supporting the goal of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several statistics and policy goals that can be used as direct or implied indicators to measure the current situation and future progress.

• Indicator: Proportion of students receiving useful financial education

  The article provides a baseline measurement of the current problem, stating that “only a third of children remember learning about money at school and finding this teaching useful.” An indicator for progress would be the increase in this percentage after the new curriculum is implemented. Success would be measured by a significant rise in the proportion of students who not only receive but also recall and value their financial education.

• Indicator: Student and public demand for financial education

  The article cites specific figures indicating high demand: “84 per cent of school age children say they want to see more financial education” and “76 per cent, of all people say schools should teach more about money.” While these figures show support for the policy, they can also serve as indicators. A decline in these numbers post-implementation could suggest that the new curriculum is successfully meeting the perceived need.

• Indicator: Policy implementation timeline

  A clear, measurable indicator is the policy milestone itself. The article states that the changes are “set to be in place by 2028.” The primary indicator of progress is whether the government successfully implements this compulsory curriculum across all primary and secondary schools in England by the target date.

4. Table of SDGs, Targets, and Indicators

Source: thisismoney.co.uk