Tips for teaching primary school pupils about money

TL;DR

Teach primary school pupils about money by building vocabulary first, then progressing from needs, wants, choice, and value to borrowing, debt, interest rates, and percentages. Nick Redfern makes lessons tangible by comparing lenders and examining how a Wonga advert used puppets, humor, and music while omitting interest rates. Read on for practical ways to make financial risks relevant and memorable.

Transcript

interactive investor has called on the government to give financial education the attention and lesson time it deserves given that financial education is not currently mandatory in primary schools what inspired you to teach your pupils about personal finance well i started teaching in way back in 1992 at a high school in norfolk and in those days u... Read More

Key Insights

• 👨‍🏫 Financial education is not currently mandatory in primary schools, highlighting the need for increased attention to teaching personal finance.
• ☠️ Teaching personal finance topics, such as debt and interest rates, can have a significant impact on students' understanding and decision-making.
• 👶 Vocabulary and basic concepts should be taught thoroughly, as children may not have a clear understanding of financial terms.
• 🧑‍🎓 Lessons should incorporate variety, tangible resources, and real-life examples to engage students and make the content more relatable.
• 👶 It is essential to relate financial concepts to children's everyday experiences, such as shopping at local supermarkets, to deepen their understanding.
• 👪 Parents' financial habits and lessons at home can also contribute to a child's financial education.
• ✋ Teaching financial literacy can empower children to make informed financial decisions and avoid high-cost debt.

Questions & Answers

Q: What are the best tips for teaching primary school pupils about money?

Start by teaching the vocabulary of money and clearly distinguishing needs from wants, choice, and value. Then introduce borrowing, lending, debt, interest rates, and percentages sequentially, using familiar examples and engaging materials such as adverts and road signs.

Q: Why should children learn about debt?

Some pupils were living with the effects of parental debt every week, so the topic directly reflected their environment. Teaching how debt accumulates and can become a debt spiral helps them understand its pitfalls and dangers.

Q: Which basic money concepts should pupils learn first?

Pupils should first understand money-related vocabulary, including needs, wants, choice, and value. This foundation makes it easier to progress to more complex ideas such as debt and interest rates.

Q: How can teachers explain the difference between borrowing and lending?

Teachers should explicitly clarify that a person borrows money while a bank or another party lends it to them. The lesson notes that children may treat phrases such as “lend me money” and “borrow me money” as meaning the same thing, so the distinction needs direct attention.

Q: How can interest rates be introduced to children?

The teacher worked with maths leads so pupils understood interest and percentages before comparing different borrowing costs. He began with parents as a potentially zero-interest source, then moved to banks, credit cards, and payday collected credit.

Q: How was the Wonga advert used to teach financial literacy?

Pupils watched a Wonga advert and examined why its presentation could be misleading. They discussed its puppets, humor, and music, noticed that interest rates were never mentioned, and then explored the massive rates Wonga charged.

Q: What did the lesson teach about payday collected credit?

The teacher described payday collected credit as carrying massively high interest. He repeatedly emphasized that pupils should consider it only as a last resort and used Wonga to demonstrate why this kind of borrowing could be dangerous.

Q: Why did Nick Redfern begin teaching personal finance?

In 1992, Redfern was teaching non-examination classes for pupils aged 14 to 16 and felt their lesson time could be used more effectively. He introduced practical topics including credit cards, calculating credit-card interest, and filling in a check.

Summary & Key Takeaways

• Financial education is not currently mandatory in primary schools, prompting the need for attention and lesson time in this subject.

• The teacher, Nick Redfern, started teaching personal finance in 1992 as a way to make use of non-examination classes.

• Lessons on debt were prompted by the environment and deprivation seen in the schools, aiming to educate students about the pitfalls and consequences of debt.