Financial education

Developing each individual's financial capability, from early years through to 18, can enhance life chances and choices. It can help all children and young people develop the four capacities, particularly in becoming responsible citizens and effective contributors to society and at work, with an informed sense of their roles in the world.

Activities to develop financial capability, where outcomes not only benefit others but also encourage a sense of responsibility to the community and society as a whole, help young people to understand the connections between enterprise and active citizenship. Our vision for financial education in Scotland is that:

• All children and young people develop the key financial skills to be successful both now and in the future.
• Financial education is embedded in Curriculum for Excellence within numeracy across learning and it provides a relevant context to develop the skills for learning life and work.
• It helps children and young people to develop the four capacities, particularly in becoming responsible citizens and effective contributors to society.

There are four key aspects to financial capability.

Financial understanding

Developing financial understanding is the first step in ensuring that young people leaving school have the skills required to deal confidently with everyday financial issues. It will also help them to make informed decisions and choices about their personal finances.

Financial competence

This means being able to apply knowledge and understanding of financial matters across a range of contexts, using ICT where appropriate. Being financially competent includes being able to identify and tackle problems or issues with confidence and being able to manage financial situations effectively and efficiently.

Financial responsibility

This means having a caring and responsible disposition with regard to the use of resources. Children and young people who budget wisely and plan for the future will be responsible citizens who look after themselves and their environment.

Financial enterprise

Financial enterprise is about being able to deploy resources in an imaginative and confident manner. Financially enterprising behaviour will involve making decisions based on informed thought and will enable children and young people to contribute effectively to the development of Scotland's wealth.

Financial education provides an excellent context for learning across the curriculum.