Teaching Money Management in Primary Schools: Financial Literacy for KS1 and KS2

Teaching Money Management in Primary Schools: Financial Literacy for KS1 and KS2

Financial literacy and encouraging a deepening understanding of money, its uses and how to manage it is an imperative part of a child’s primary education. PSHE curriculums offer an excellent opportunity to begin teaching the principles of money management to students alongside a wider curriculum of learning (including RSE provision). 

What is Financial Literacy for Primary Students?

Financial literacy involves teaching students about finance and money management, including exploring how money is earnt, used and saved (as well as the reasons for doing this). These lessons begin in KS1 classrooms, where children can begin to develop an understanding of what money is and why it has value.

In KS2, financial literacy education builds on these key  concepts by introducing more complex topics of learning such as budgeting, financial planning and the role of banks. Students learn to make more informed decisions about spending and saving, understand the importance of distinguishing between needs and wants, and begin to grasp the basics of earning money through work. 

Many of these topics can be taught through very practical and engaging activities such as role play activities and board games. By teaching financial literacy in PSHE lessons, students can further cement and apply learning from ongoing maths lessons. Providing students with rich PSHE focused learning around money management skills is crucial to improving student’s overall financial literacy.

Topics of Learning in Financial Literacy Lessons

There are several core topics to explore during PSHE lessons on money management and financial literacy:

• Common Uses of Money in Our Daily Lives: Young learners may sometimes have a limited understanding of what money is and how it is used. At times, they may have some conception of money through interactions with parents or family members. It is important to develop an understanding of how, when and why money is used in daily situations, such as paying for food, housing, healthcare or other essential goods. This enables students to recognise that money is an important and finite resource.

• Money Management and Budgeting: Students should recognise that money is earned through work and paid in weekly, monthly or similar instalments. Some students may already have some experience of managing their own money through experiences such as allowances or pocket money. However, by using games (such as found in the Muse Wellbeing curriculum), students can create their own budgets to encourage a deeper understanding of the role money plays in our daily lives.

• Keeping Money Safe and Careers Education: Another core principle of a strong financial literacy curriculum is to share the numerous ways in which we can care for and secure our money. Roleplaying activities, such as opening a bank account or making deposits are excellent activities to engage younger learners. Students must also recognise the important role of employment in earning money to ensure they have sufficient finances to take care of their needs.

Highlighting the above principles to primary school children throughout all year groups will enable a stronger understanding and respect for money.

PSHE Money Management Activity Ideas

UK schools are given the freedom to create PSHE schemes of work that best suit the needs of their learning community (though elements of PSHE, such as RSE, are non-statutory subjects). As a result, teachers can enjoy greater freedom to teach the subject in a manner they feel best suits their class. 

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