What is Financial Capability?

It's important that children and young people are aware of all the financial things that affect them every day, so that they can make responsible decisions about their own finances as they get older and become more independent.

Nationwide believes that it is particularly important for young people to develop a good understanding of how to manage their money, and eventually their debt, effectively and responsibly.

The education departments for England, Scotland, Wales and Northern Ireland view the teaching of financial capability in schools as increasingly important. Financial education is part of the statutory curricula for all countries within the UK. Details can be found in the Curriculum Links sections and in the Teachers’ Guides.

Financial Capability Objectives

In 2014, The Money Advice Service commissioned a charity, NPC, to create the Financial Capability Outcome Framework which sets out the key learning objectives in relation to finance. The objectives for 11 to 14 and 14 to 16 years are shown below.

11-14 yrs

Understanding financial products and concepts

  • I can assess which current/ savings account will be right for me.
  • I can interpret what my bank statement means.

Understanding of money management

  • I know how to set a basic budget for myself and broadly stay on track.
  • I know how to protect myself from fraudulent activity.

Applied numeracy

  • I have attained the level of skills in maths relevant to applied numeracy including using decimal quantities, unit pricing, percentage increase and decrease, and simple interest.

Literacy

  • I have attained the level of skills in English expected in the national curriculum for my age, including reading, writing, grammar and vocabulary, and spoken English.

Problem solving

  • I can identify and understand a problem.
  • I can plan ways to solve a problem.
  • I can monitor progress in tackling a problem.
  • I can review solutions to problems and modify them if necessary.

Attitudes to money

  • I do not perceive money as something difficult, that should be worried about but I understand that I can influence my own financial situation through the choices I make.

Aspirations and goals

  • Money is the means to achieve some of the things I want.
  • I can identify my own short to medium term goals and understand the role money could play in achieving them.

Self-confidence

  • I have a sense of my own value or worth.
  • I feel confident to select an appropriate current account without parental instruction, and communicate with banking staff about this activity.

Self-control

  • I can demonstrate self-control in non-financial situations.
  • I am starting to differentiate between different levels of needs when I make spending decisions

Perseverance

  • I have perseverance and can recover from setbacks.

Exposure and access to appropriate financial products and channels

  • I choose and regularly use my own current and savings accounts.

Managed exposure to risk

  • I experience managing my own money with some supervision.
  • I am included in more complex adult spending decisions.

14-16 yrs

Understanding financial products and concepts

  • I understand the range of savings options available and how they relate to my goals.

Understanding of money management

  • I understand how my spending decisions could affect others, and how others’ spending decisions could affect me.

Understanding the role of money in society

  • I am aware of the external factors that could impact my own personal financial situation including government spending and decisions.
  • I know how public money is raised and spent.

Applied numeracy

  • I have attained the level of skills in maths relevant to applied numeracy including compound interest.

Literacy

  • I have attained the level of skills in English expected in the national curriculum for my age, including reading, writing, grammar and vocabulary, and spoken English.

Problem solving

  • I can identify and understand a problem.
  • I can plan ways to solve a problem.
  • I can monitor progress in tackling a problem.
  • I can review solutions to problems and modify them if necessary.

Attitudes to money

  • I am happy to talk openly about money and what I can and can’t afford.

Aspirations and goals

  • I know that setting goals and making and sticking to goals will help me achieve the things I want.

Self-confidence

  • I have a sense of my own value or worth.
  • I feel confident to critically assess advice and information I receive / behaviour I see and question whether it is right for me.

Self-control

  • I can demonstrate self-control in non-financial situations.

Perseverance

  • I have perseverance and can recover from setbacks.

Exposure and access to appropriate financial products and channels

  • I choose and regularly use my own current and savings accounts.

Managed exposure to risk

  • I experience managing my own money without supervision.
  • I am included in complex and longer-term adult spending decisions.